Overview

With the normal net lease investment for a retail Walmart averaging around ten million dollars, they have a naturally high barrier to entry for individual investors. Often times such transactions are made by group entities, given that a standard retail building may span from 51k sq. ft. to 224k sq. ft. in size. Typically, the dimensions will average about 102k sq. ft.; this data is of course skewed by the sheer size of Walmart Supercenters which tend to be 197k sq. ft. However, they can range from 98k-261k in size and usually include a complete grocery store alongside the department store. Given their high yearly rental costs with lower capitalization, caps are generally found between 6 and 7 and depend on the negotiations per individual lease agreement.