Harbor Freight

Harbor Freight Tools – Spartanburg, South Carolina | Net-Leased Investment in a Southeast Regional Growth Market

This offering features a single-tenant retail investment opportunity leased to Harbor Freight Tools, a nationally expanding value hardware retailer. Located in Spartanburg, South Carolina, this property is supported by long-term lease stability, passive income potential, and a robust trade area defined by industrial growth, strong demographics, and regional economic drivers. The lease is structured as either a double-net or absolute triple-net (NNN), providing investors with minimal management responsibilities and dependable cash flow backed by a corporate tenant.

Harbor Freight continues to target high-performing secondary markets across the Southeast, and Spartanburg fits squarely within its expansion profile. As a regional hub for logistics, manufacturing, and distribution, Spartanburg provides a prime environment for value-focused, contractor-driven retail. The location benefits from proximity to major transportation corridors, an influx of residential development, and a diverse customer base comprising tradespeople, professionals, and homeowners.

Whether positioned for a long-term hold, 1031 exchange deployment, or as part of a diversified net lease portfolio, this Harbor Freight Tools property represents a stable, recession-resistant investment in a proven Southeastern submarket.

Tenant Overview – Harbor Freight Tools

Founded in 1977, Harbor Freight Tools is a leading national discount tool and equipment retailer that serves both professionals and DIY customers. With a footprint exceeding 1,400 locations and over 40 million customers annually, Harbor Freight has cultivated a loyal customer base focused on affordability, selection, and operational efficiency.

Core tenant attributes include:

• Privately held, debt-free company with more than $7 billion in annual revenue
• More than 1,400 retail locations across 48 states
• Sells 20,000+ SKUs in key categories such as hand tools, power tools, automotive equipment, lawn and garden, and safety supplies
• Owns proprietary tool brands and offers industry-leading warranties
• Serves both walk-in retail traffic and high-frequency contractor business
• E-commerce growth with integrated store fulfillment
• Dedicated real estate and expansion team targeting growth metros and underserved hardware markets

Harbor Freight’s performance is driven by its deep market penetration into suburban and tertiary communities, where its value-oriented proposition serves both essential retail needs and repeat-use professional demands.

Lease Structure – Corporate Net Lease Offering Predictable Income

The property is leased directly to Harbor Freight under a long-term lease format that includes periodic rent escalations and limited or no landlord obligations. The structure is ideal for passive investors seeking predictable income with institutional-grade tenant security.

Typical lease characteristics include:

• 10 to 15-year initial lease terms
• 5-year renewal options (often up to four renewals)
• 10% rental escalations every five years or CPI-based increases
• Double-net (NN) or triple-net (NNN) format
• Tenant pays taxes, insurance, and common area maintenance
• Landlord responsibility limited to roof and structure, if applicable
• Corporate lease guarantee from Harbor Freight Tools
• Significant tenant investment in site-level upgrades and infrastructure

These lease attributes create an income stream that is both durable and passively managed, aligning with the objectives of long-term holders, estate planners, and 1031 exchange buyers.

Market Overview – Spartanburg, South Carolina

Spartanburg is one of the fastest-growing mid-sized cities in South Carolina and functions as a regional economic center within the greater Upstate region. The city has seen substantial economic development in recent years, including expansions in the manufacturing, logistics, and healthcare sectors. With a population of over 38,000 within the city and more than 320,000 in the county, Spartanburg anchors a trade area that stretches across both the Carolinas.

Key economic and demographic data:

• Spartanburg County population exceeds 325,000
• Median household income of approximately $60,000
• Major employers include BMW Manufacturing, Michelin, Milliken & Company, and Spartanburg Regional Healthcare System
• Located along Interstate 85 with direct access to Charlotte and Atlanta
• Home to Wofford College and University of South Carolina–Upstate
• No state tax on Social Security benefits and a low overall tax burden
• Diverse economy with balanced employment across manufacturing, education, distribution, and healthcare

The city’s central location within the I-85 corridor has made it a magnet for investment, particularly in the industrial and distribution sectors. Spartanburg’s logistics infrastructure supports heavy truck traffic, which dovetails with Harbor Freight’s focus on tradespeople and contractors who rely on readily available tools and parts.

Trade Area Characteristics – Prime Location for Value Hardware Retail

The subject property benefits from strong visibility and access within a high-traffic retail corridor in Spartanburg. The surrounding area features a blend of national tenants, local services, and densely populated residential neighborhoods that provide a stable customer base for an essential-use retailer like Harbor Freight.

Trade area attributes:

• 5-mile population of approximately 110,000 residents
• Significant daytime population due to nearby industrial parks and corporate employers
• Co-tenancy with Walmart, Lowe’s, Tractor Supply, auto parts retailers, and discount grocers
• Nearby service-based uses including auto repair shops, banks, fast food, and logistics offices
• Highly visible from arterial roadways with monument signage and ample parking
• Traffic counts exceeding 25,000 vehicles per day in immediate vicinity
• Strong repeat traffic from tradespeople, contractors, and local small business operators

This real estate profile aligns well with Harbor Freight’s ideal site model—targeting value-driven consumers who prioritize convenience, in-stock inventory, and affordability.

Property Features – Functionality and Efficiency Built for Retail Success

Harbor Freight’s store designs focus on efficient inventory layout, customer ease of access, and low-cost maintenance. The physical structure typically supports high merchandise turnover, flexible racking systems, and minimal capital exposure for landlords.

Common building and site attributes:

• Building sizes between 15,000 and 20,000 square feet
• Block, tilt-wall, or CMU construction
• Clear-span interior with high ceilings and LED lighting
• Climate control throughout customer and back-of-house areas
• ADA-compliant restrooms and entryways
• Dedicated loading zones and rear access for inventory shipment
• Pole and façade signage visibility
• Ample on-site parking with contractor truck access
• Strategic corner or mid-block positioning with easy ingress/egress

This layout is optimal for retail tenants like Harbor Freight who rely on high in-store traffic volume and low friction shopping experiences.

Investment Summary – Long-Term Stability with National Tenant

This single-tenant asset leased to Harbor Freight Tools offers a compelling mix of long-term lease security, credit-backed income, and real estate fundamentals that support sustained tenant performance. With limited landlord obligations and passive income characteristics, it is suitable for a wide range of buyer profiles—from private individuals to institutions.

Key investment highlights:

• Harbor Freight Tools is one of the most successful private hardware retailers in the U.S.
• Net lease structure offering passive ownership and predictable rental income
• Corporate guarantee with strong revenue growth and national footprint
• Recession-resistant business model centered on affordability and essential goods
• Trade area supported by logistics, manufacturing, healthcare, and residential growth
• Located in a business-friendly state with favorable tax and landlord laws
• Strong residual value driven by real estate location and tenant type
• Compatible with 1031 exchanges, trusts, and estate planning vehicles
• Strong tenant renewal history across multiple markets

As net lease assets continue to gain favor among risk-conscious investors, properties like this—featuring nationally scaled tenants in growing metros—are increasingly desirable for their blend of credit quality, income reliability, and simplicity of ownership.

Conclusion

The Harbor Freight Tools property in Spartanburg, South Carolina is a rare opportunity to acquire a durable income-producing asset with a corporate net lease, essential retail tenancy, and strong supporting market demographics. Positioned in one of the Southeast’s most active and diversified metro areas, the property benefits from structural demand drivers that align with Harbor Freight’s operating model and store-level performance benchmarks.

This asset is ideal for buyers looking for a low-maintenance, credit-anchored investment that offers strong income visibility, minimal exposure, and long-term upside through tenant continuity and submarket stability. With Harbor Freight’s ongoing national expansion and Spartanburg’s continued economic growth, this opportunity is well-positioned to deliver above-average income durability and capital preservation in the years ahead.