Brand-New 10-Year Lease with 10.00% Rent Increases Every Five Years
– Tesla entered into a brand-new 10-year lease commencing in 2024.
– Tesla invested roughly $5.0M on interior upgrades and renovations prior to opening for business, showing a strong commitment to the site.
– The lease features 10.00% rental increases every five years, providing an excellent hedge against inflation in the future.
– There are three (3), five-year options to renew the lease following the base term. Rent is set to increase by 10.00% every five years in the base term and throughout each option period.
This is One of Two Collision Center Locations for Tesla in all of Ohio.
– The next closest is 111 miles away in Cincinnati, OH, so this facility serves as the collision repair hub for the entire Columbus, OH market.
– The property sits just off of the I-270, which provides direct access to downtown Columbus and sees traffic counts exceeding 106,000 Cars per Day.
Corporate Guarantee (NASDAQ: TSLA – $838.8B Market Cap)
– Tesla, Inc. (NASDAQ: TSLA), is an American multinational electric vehicle and clean energy company based in Austin, Texas. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale, and solar panel and solar roof tile manufacturing.
– Tesla is one of the world’s most valuable companies and remains the world’s most valuable automaker with a market capitalization of more than US $838.8B (Oct 2024).
Well-Below Market Rent Per Square Foot for Tesla
– For Tesla deals that have either sold or been listed over the trailing 12-months, the average rental rate per square foot that Tesla is paying is $23.67/sf. On the subject property, Tesla is currently paying a rental rate of $12.84/sf.
– This sample size of 26 different locations nationwide included a combination of sales, service, collision and delivery centers.
Dense Location Outside of Columbus
– The subject property is just 15 miles from downtown Columbus, which is the most populous city in Ohio with approximately 913,000 residents. Another traffic driver for Tesla comes from The Ohio State University (enrollment of 66k+ students), which is just 8 miles away from the site.
– Franklin County, home to Columbus, is surrounded by mainly rural counties. Columbus, the state’s capital city, is a national transportation and distribution hub, with nearly 60% of the United States population within an eight-hour driving radius.
