Investment-grade, need-based auto parts retail at accessible price points, and what to check on an O’Reilly lease before you buy.
An O’Reilly Auto Parts net lease property is a freestanding auto parts store, typically about 7,000 to 7,500 square feet, leased to O’Reilly Automotive on a long-term corporate lease, often 15 to 20 years with 10% rent increases every five years on new construction. Many new stores are NN, with the landlord responsible for the roof and structure (often backed by a long roof warranty); some are absolute NNN ground leases. O’Reilly is one of the largest auto parts retailers in the country, with more than 6,600 stores and investment-grade credit (S&P BBB / Moody’s Baa1). With price points of about $1 million to $3 million and need-based demand, O’Reilly is a popular fit for 1031 exchange buyers, often compared side by side with AutoZone.
Solid Investments FL has represented buyers on O’Reilly properties, including a ground lease in Ft. Worth, Texas and a store in Statesville, North Carolina. See them in our track record. Our buyer representation is always free to you.
| Tenant | O’Reilly Automotive, Inc. (Nasdaq: ORLY) or a subsidiary; confirm the tenant and guarantor on each lease |
|---|---|
| Headquarters | Springfield, Missouri |
| Credit rating | S&P BBB / Moody’s Baa1 (investment grade, stable) |
| Stores | 6,600+: about 6,540 in 48 states and Puerto Rico, plus Mexico and Canada |
| Typical lease term | 15–20 years on new construction, with multiple 5-year options |
| Lease type | Often NN (landlord roof and structure) on new stores; some absolute NNN ground leases |
| Rent increases | Commonly 10% every 5 years; varies by lease |
| Typical cap rate (2026) | About 5.0%–6.0% |
| Typical price range | About $1M–$3M |
| Typical building | About 7,000–7,500 SF on roughly an acre |
Credit ratings and store counts as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Many new O’Reilly leases are NN: you cover the roof and structure. New stores often come with a long transferable roof warranty, which takes much of the risk off the table. Confirm what’s yours and what’s warrantied.
O’Reilly is rated BBB by S&P and Baa1 by Moody’s, both stable, and has opened more than 200 net new stores a year. Confirm the lease is signed or guaranteed by the parent company.
New leases commonly include 10% increases every five years. Older leases may be flat until the options, so check the rent schedule.
Drivers keep cars longer and repair rather than replace when money is tight. O’Reilly serves both do-it-yourself customers and professional repair shops, which keeps stores busy through economic cycles.
Some O’Reilly deals are ground leases (you own the land only, no landlord duties); most new build-to-suits are fee simple, which gives you depreciation on the building.
O’Reilly often serves smaller and mid-size markets. A busy corridor, good visibility and a flexible building on about an acre make the property easier to re-lease down the road.
Most new O’Reilly build-to-suits sell fee simple, so you own the building and site improvements, and they are depreciable. The building itself is depreciated over 39 years, which can shelter much of your rental income. A cost segregation study goes further: it separates out parts of the property that can be written off much faster, and under current law that portion qualifies for 100% first-year (bonus) depreciation. With a ground lease you own only the land, which is not depreciable.
A new fee-simple O’Reilly gives you the building and site improvements, often well over half of the purchase price.
Parking lot, paving, site lighting, signage, landscaping and certain interior fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
A cost segregation study is a modest one-time cost. Your CPA can estimate the first-year benefit on a specific store before you commit, based on your purchase price and tax situation.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve represented buyers on O’Reilly Auto Parts properties in Texas and North Carolina:
Auto Parts / Service
Auto Parts / Service
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, with 21+ years in net lease and 225+ transactions, including O'Reilly Auto Parts properties. We help investors and 1031 exchange buyers find, underwrite and close O'Reilly properties nationwide, and our buyer representation is free.
As of 2026, O'Reilly Auto Parts properties generally trade between about 5.0% and 6.0% cap rates, depending on the lease term, rent increases, landlord responsibilities and location.
As of 2026, O'Reilly Automotive is rated BBB by S&P and Baa1 by Moody's, both investment grade with stable outlooks.
Many new O'Reilly leases are NN, meaning the landlord is responsible for the roof and structure while O'Reilly pays taxes, insurance and most maintenance. New stores often include a long transferable roof warranty. Some O'Reilly properties are absolute NNN ground leases.
Both are investment-grade auto parts retailers with need-based demand. AutoZone deals are more often absolute NNN ground leases, while many new O'Reilly stores are NN fee-simple build-to-suits that offer depreciation. The better fit depends on whether you want zero landlord responsibilities or the tax benefits of owning the building.
Most O'Reilly Auto Parts properties sell for about $1 million to $3 million, depending on rent, location and lease terms.
If you buy it fee simple, yes: the building and site improvements can be depreciated, and a cost segregation study can accelerate part of that. With a ground lease you own only the land, which is not depreciable. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
Tell us your budget and timeline. We’ll show you on- and off-market O’Reilly options, and our buyer representation is completely free.
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