| Purchase Price | $3,265,000 |
|---|---|
| Annual Rental Income | $237,000 |
| Cap Rate | 7.26% |
| Lease Term | 15 Years |
| City | Lubbock |
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Harbor Freight Tools – Lubbock, Texas | Net-Leased Retail Investment in a High-Growth West Texas Hub
This offering represents an outstanding opportunity to acquire a net-leased Harbor Freight Tools property located in Lubbock, Texas, a growing West Texas economic hub known for its strong infrastructure, university presence, and regional retail significance. The asset features a long-term, corporately backed lease and is situated in a prime trade corridor surrounded by essential services, value-based retail, and working-class residential neighborhoods.
Harbor Freight Tools continues to expand its national presence by targeting stable secondary markets with strong middle-income demographics and high contractor density. Lubbock’s blue-collar base, combined with its population growth, university influence, and regional trade importance, makes it a highly strategic location for this recession-resistant, essential-use tenant.
The property operates under a net lease with limited or no landlord responsibilities, offering investors a passive, predictable income stream anchored by a nationally recognized hardware brand. Ideal for 1031 exchange buyers, yield-focused investors, or long-term portfolio holders, this Harbor Freight Tools opportunity delivers a compelling mix of stability, tenant credit, and market fundamentals.
Tenant Overview – Harbor Freight Tools
Founded in 1977, Harbor Freight Tools is a family-owned, nationally operating hardware and equipment retailer with over 1,400 stores across 48 states. The company serves more than 40 million customers annually, including tradespeople, homeowners, DIY enthusiasts, and contractors.
Key facts about the tenant:
Harbor Freight’s business model emphasizes affordability, reliability, and convenience, making it a preferred destination for small business operators, service professionals, and rural tradespeople. The company invests significantly in store infrastructure and merchandising to maintain operational efficiency and a loyal customer base.
Lease Structure – Net-Leased with Corporate Guarantee
Harbor Freight stores are typically leased under a double-net or absolute triple-net lease structure, making the investment highly appealing to passive buyers and institutions alike. The lease offers long-term security with built-in rental escalations and a corporate guarantee from Harbor Freight Tools.
Common lease highlights include:
The lease provides investors with consistent cash flow, capital preservation, and low management burden, making it an ideal vehicle for retirement income, family trusts, and 1031 exchanges.
Market Overview – Lubbock, Texas
Lubbock is the eleventh-most populous city in Texas and the commercial, medical, and educational center of the South Plains region. With a population of over 260,000 and a broader metro population exceeding 325,000, Lubbock serves as a critical distribution and retail anchor for West Texas, Eastern New Mexico, and the Texas Panhandle.
Key economic indicators and strengths:
Lubbock’s balanced economy and status as a regional draw make it a high-performing market for necessity-based retailers. The presence of educational institutions, strong healthcare infrastructure, and logistics connectivity supports year-round commercial activity and employment stability.
Retail and Trade Area Dynamics – Prime Hardware Retail Submarket
The Harbor Freight property is situated within a robust retail corridor that caters to Lubbock’s diverse residential base, university population, and contractor community. The surrounding trade area includes national retailers, grocery anchors, discount chains, and professional services—all contributing to high traffic counts and consistent foot traffic.
Common trade area features include:
The site’s positioning near residential zones and working-class neighborhoods offers a consistent customer base for Harbor Freight’s core product lines. The area draws regular traffic from both local residents and tradespeople who rely on in-stock tools, supplies, and equipment.
Property Overview – Efficient Retail Format and Site Design
Harbor Freight stores are designed to optimize merchandising, streamline customer flow, and minimize operational overhead. The typical store layout is flexible and built to accommodate large inventory volumes while maintaining a welcoming retail environment for both individual shoppers and high-volume professional customers.
Standard features often include:
These physical characteristics support high turnover, ease of stocking, and strong tenant sales, all of which contribute to tenant retention and long-term asset value.
Why Harbor Freight in Lubbock Makes Strategic Sense
The Lubbock market aligns with Harbor Freight’s national expansion strategy by offering:
Lubbock’s strategic role as a commercial and agricultural hub for West Texas gives Harbor Freight the ability to serve both in-town residents and outlying areas where tool access is critical to daily operations. This long-term demand supports store profitability and long-term viability.
Investment Highlights
Conclusion
The Harbor Freight Tools location in Lubbock, Texas offers investors a highly resilient, passive income-producing real estate opportunity with exposure to a strong national tenant. With a long-term corporate lease in place, this single-tenant retail property is positioned to deliver dependable returns for years to come.
This investment is tailored for those seeking long-term wealth preservation, risk-adjusted yield, and minimal property management responsibilities. Located in one of Texas’s most important regional metros, the property benefits from consistent tenant performance, long-term demographic tailwinds, and strong economic fundamentals that support sustained occupancy and value retention.