Looking to buy an Advance Auto Parts NNN property? 74 are observed for sale across 24 states, median asking cap rate 7.25%. View Advance Auto Parts NNN properties for sale, cap rate bands and the 1031 buyer guide.
| Metric | Details |
|---|---|
| Parent Company | Advance Auto Parts, Inc. |
| S&P Rating | BB |
| Moody’s Rating | no verified rating |
| Investment Grade Status | Below Investment Grade |
| Sector | Auto Parts Retail |
| US Locations | 4,148 (January 3, 2026), plus 157 in Canada |
| Median asking cap rate | 7.25% (active listings we track; see the live table below) |
| Typical Lease Term | Varies; the 2025 Form 10-K gives five to ten years as the usual initial term for its facility leases; confirm in each lease |
| Lease Guarantee | Varies; confirm in each lease |
| Stock Ticker | AAP (NYSE) |
| Fiscal Year 2025 Net Sales | $8.6B (Form 10-K) |
Advance Auto Parts Business Overview & NNN Investment Profile
Advance Auto Parts is a North American retailer of aftermarket automotive parts and accessories serving both do-it-yourself customers and professional installers, mainly under the Advance Auto Parts and Carquest names. As of January 3, 2026, it operated 4,305 stores: 4,148 in 44 US states and two US territories and 157 Carquest stores in Canada. It also served 809 independently owned Carquest stores. Net sales from continuing operations were $8.6 billion in fiscal 2025, down 5.4% from 2024 as closed stores dropped out, according to the company’s 2025 Form 10-K.
Advance was long treated as an investment grade credit tenant. S&P first cut it below investment grade in 2023 (BBB- as of July 15, 2023 and BB+ as of October 7, 2023, per its Form 10-Q filings); its current S&P rating is BB. In August 2025 it issued $1.95 billion of senior notes from an offering launched in July 2025 and later upsized, which raised its debt. Its S&P rating remains below the BBB- line.
Rated entity: Advance Auto Parts, Inc. Current rating: BB (S&P). Source: S&P Global Ratings BB, as of July 10, 2026. Ratings checked October 8, 2026.
The company is in the middle of a turnaround. It sold its Worldpac wholesale business in November 2024 for about $1.44 billion of net proceeds, closed about 500 stores and 200 independent locations in the first quarter of 2025, and in August 2025 issued $1.95 billion of new senior notes. Long-term debt was $3.5 billion at January 3, 2026, up from $1.8 billion a year earlier. For NNN investors, the question is whether a given store sits in a trade area strong enough to keep it open, and whether the real estate holds its value if it does not.
Advance Auto Parts Credit Rating Analysis
Advance Auto Parts is not investment grade. Advance Auto Parts Inc. carries issuer rating of BB from S&P Global Ratings: below the BBB-/Baa3 investment grade threshold. Ratings checked October 8, 2026. See the investment grade credit tenant ratings table.
Non-Investment Grade / High Yield
S&P rates Advance Auto Parts, Inc. BB. Long-term debt principal rose to $3.5 billion at January 3, 2026 from $1.8 billion a year earlier (2025 Form 10-K).
Key risk factors for NNN investors:
- Leverage: long-term debt principal nearly doubled in 2025, to $3.5 billion, after the $1.95 billion notes issue. Cash also rose to $3.1 billion, of which $2.3 billion was designated as qualified cash under the new asset-based credit facility
- Turnaround execution: margins and cash generation depend on management delivering the restructuring plan
- Store-level risk: the company closed 522 stores in 2025, so each remaining store’s sales and trade area matter as much as the corporate credit
- Competition: AutoZone and O’Reilly are larger, higher-rated competitors, and online sellers compete on price
- Long-term category shifts: electric vehicles need fewer traditional replacement parts over time
Mitigating factors:
- Repair demand: Advance’s 10-K lists the average age of vehicles on the road among factors that affect demand, since newer cars need fewer repairs
- Re-leasable real estate: a freestanding store on a busy corridor may be re-leasable to another parts retailer or automotive service user; re-leasing prospects vary by site
- Smaller store base: after the closures, Advance says it has the highest or second highest market share by store count in about 75% of its markets
Bottom line: Advance Auto Parts is a high yield credit, not a core investment grade NNN tenant. It fits investors who want the extra yield, can underwrite the location on its own merits and will monitor the company’s results.
Advance Auto Parts NNN Lease Structure
Lease terms vary by property and vintage, so read each lease. Common features include:
- Initial term: Advance’s 10-K says its facility leases typically have initial terms of five to ten years, with renewal options typically at five-year intervals; some build-to-suit leases run longer, so read each lease
- Rent increases: vary by lease; some include fixed increases in the renewal options
- Expenses: the Advance listings we track include NNN, NN and absolute NNN leases; an NN lease can leave the roof, structure or other items with the landlord, so confirm each party’s duties in the lease
- Tenant and guarantor: confirm whether Advance Auto Parts, Inc. or an operating subsidiary signs or guarantees the lease
- Building: Advance Auto Parts locations average about 8,100 square feet including hubs, and Carquest stores about 6,600 square feet, according to the 2025 Form 10-K; confirm whether the property is freestanding
If the tenant ever filed for bankruptcy, it could assume or reject each lease. An assumed lease must be brought current; a rejected lease leaves the landlord with an unsecured claim for damages capped under Section 502(b)(6) of the Bankruptcy Code. That is why the location and the rent relative to market matter as much as the guarantee.
Advance Auto Parts NNN Cap Rate & Pricing Trends
Live asking cap rates for Advance Auto Parts and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| AutoZone | BBB / Baa1 | 5.35% | 4.95% to 5.80% | 27 | +11 bps |
| O'Reilly Auto Parts | BBB / Baa1 | 6.00% | 5.60% to 6.38% | 27 | +76 bps |
| Advance Auto Parts | BB / n/a | 7.25% | 6.41% to 8.00% | 71 | +201 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 19, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
The live table above compares current median asking cap rates for Advance Auto Parts, AutoZone and O’Reilly listings. Asking cap rates reflect tenant credit together with remaining lease term, rent, location and property condition, and the listings are not matched pairs, so the gap between tenants is not a measure of credit alone. For a specific Advance property, weigh the store’s sales where available, the trade area and the re-leasing potential.
For how ratings map to lease risk across the NNN market, see the investment grade guide.
Advance Auto Parts Real Estate Footprint
After the 2025 closures, Advance operated 4,148 US stores across 44 states and two territories at January 3, 2026. Points to check at each store:
- Freestanding or inline: re-leasing prospects and value can differ between freestanding and inline space
- Corridor: whether nearby tire, repair and service businesses draw the same customers
- Access: frontage, customer parking and vehicle entry
With the closure program complete, Advance opened 39 stores in 2025. Landlords should still review store sales where available, the trade area and nearby competition, since a store that survived the closures can still be closed later if it underperforms.
Advance Auto Parts Strategy & Strategic Position
- Worldpac sale (November 2024): sold the Worldpac wholesale business for about $1.44 billion of net proceeds to focus on the core parts business
- Store closures (first quarter 2025): closed about 500 stores and 200 independent locations under the 2024 restructuring plan
- Notes issue (August 2025): issued $975 million of 7.000% notes due 2030 and $975 million of 7.375% notes due 2033, and redeemed the $300 million of 5.90% notes due 2026
- Selective growth: opened 39 stores in 2025
The long-term credit picture depends on the turnaround. Better margins and cash flow could support an improved rating over time, while a stalled turnaround would raise the risk of rent relief requests or a restructuring.
Advance Auto Parts Investment Pros & Cons
| Investment Pros | Investment Cons |
|---|---|
| Repair demand: parts demand is tied to vehicle repair needs, which the 10-K links to factors such as vehicle age | High yield credit: rated BB, below investment grade |
| Asking yield: compare current median asking cap rates with AutoZone and O’Reilly in the live table above | Leverage: long-term debt principal rose to $3.5 billion at January 3, 2026 from $1.8 billion a year earlier; cash also rose to $3.1 billion |
| Re-leasable real estate: a location on a strong corridor may be re-leasable to another parts retailer or service user; prospects vary by site | Store-level risk: 522 stores closed in 2025, so location quality matters |
| Turnaround upside: improving results could support the credit over time | Execution risk: a recession or operating missteps could stall the turnaround |
Comparable Advance Auto Parts NNN Tenants
| Tenant | Credit Rating (S&P / Moody’s) | Investment Grade Status | Key Differentiators |
|---|---|---|---|
| AutoZone | BBB/Baa1 | Investment Grade | Rated higher than Advance; see the ratings in this table |
| O’Reilly Auto Parts | BBB/Baa1 | Investment Grade | Growing store base: 6,585 stores at December 31, 2025 (Form 10-K) |
| NAPA (Genuine Parts) | BBB-/Baa1 | Parent Rated Investment Grade (Genuine Parts Company); confirm the lease guarantor | About 65% of Genuine Parts’ 6,864 North American automotive locations were independently owned stores at December 31, 2025 (Form 10-K); confirm whether Genuine Parts signs or guarantees the lease |
| Advance Auto Parts | BB | Below Investment Grade | Below investment grade; turnaround underway after the 2025 store closures |
Frequently Asked Questions: Advance Auto Parts NNN Investments
Is Advance Auto Parts investment grade?
No. S&P rates Advance Auto Parts, Inc. BB, below the BBB- investment grade threshold. That makes it a high yield credit at S&P, suited to investors who want extra yield for extra risk rather than portfolios that require investment grade tenants.
When did Advance Auto Parts lose its investment grade rating?
S&P first cut Advance below investment grade in 2023: the company’s Form 10-Q filings show an S&P rating of BBB- as of July 15, 2023 and BB+ as of October 7, 2023.
The company then took on more debt. In July 2025 it launched a senior notes offering that was later upsized to $1.95 billion and issued on August 4, 2025, and long-term debt principal rose to $3.5 billion at January 3, 2026 from $1.8 billion a year earlier (2025 Form 10-K).
Its current S&P rating is BB. Rating sources: S&P Global Ratings BB, as of July 10, 2026. Ratings checked October 8, 2026.
Can I buy Advance Auto Parts NNN properties and expect stable returns?
Stable returns are not assured, even with active monitoring. If the turnaround keeps improving results, the credit could stabilize or improve, which supports rent payments and renewals. If it stalls, the company could ask for rent relief or restructure, and leases can be rejected in bankruptcy. Price the property on the remaining lease term, the rent relative to market and the real estate, not on the brand alone.
If Advance Auto Parts closes my store, what happens to the lease?
Closing a store does not by itself end the lease. Unless the lease gives Advance Auto Parts an early termination right, or the landlord agrees to a negotiated termination or buyout, the tenant (and any guarantor) generally remains obligated to pay rent through the term even if the store goes dark. Advance’s filings describe exiting closed-store leases before their contractual end through negotiated terminations and modifications, so the outcome depends on your lease and the negotiation.
In a bankruptcy, a tenant can reject leases, and the landlord’s damages claim is capped under Section 502(b)(6) of the Bankruptcy Code. Review the go-dark, recapture, assignment and termination provisions with counsel before buying.
If the space does end up vacant, a location on a strong automotive corridor may be re-leasable to another parts retailer or an automotive service operator, but re-leasing takes time and the new rent may be lower or higher than the Advance rent. Vacancy can last longer at weaker locations, which is why location-level underwriting matters.
Advance Auto Parts Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Advance Auto Parts properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
Advance Auto Parts NNN Properties Observed For Sale
74 active Advance Auto Parts net lease listings observed across public listing sources, most recently Oct 19, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Elk River, MN | $1,910,100 | 6.00% | 6,695 | n/a | View listing |
| Lima, OH | $1,090,000 | 8.00% | 7,000 | n/a | View listing |
| Inwood, WV | $2,118,000 | 5.75% | 9,350 | 11.1 yrs | View listing |
| MARTINSBURG, WV | $1,846,154 | 6.50% | 7,000 | 8.4 yrs | View listing |
| Whitinsville, MA | $1,755,000 | 7.25% | 7,000 | 6.3 yrs | View listing |
| New Bedford, MA | $2,080,000 | 7.25% | 7,000 | 6.3 yrs | View listing |
| Wallingford, CT | $1,850,000 | 7.28% | 7,810 | n/a | View listing |
| West Valley City, UT | $2,478,672 | 5.50% | 6,889 | n/a | View listing |
Search all 74 observed Advance Auto Parts listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
