Home Depot

Home Depot – Raleigh, North Carolina (Raleigh–Durham MSA)

The Home Depot property located in Raleigh, North Carolina represents a rare opportunity to acquire a long-term, net-leased retail asset tenanted by one of the most dominant and creditworthy companies in the U.S. retail sector. Backed by Home Depot Inc.—a Fortune 20, investment-grade tenant with a resilient, omni-channel business model—this asset offers passive income, high traffic visibility, and operational significance in one of the fastest-growing MSAs in the United States: the Raleigh–Durham Research Triangle.

Located in the capital of North Carolina, the property benefits from outstanding demographics, consistent population growth, and a high-quality workforce drawn to the region’s major universities, life sciences companies, and tech sector employers. Raleigh is a national magnet for corporate relocations, talent retention, and suburban expansion. The city’s infrastructure, quality of life, and ongoing economic momentum position it as a strategic market for national retailers, making this Home Depot location an institutional-quality investment with exceptional long-term fundamentals.

This freestanding Home Depot store operates under a long-term lease structure with limited landlord responsibilities and is situated in a prime commercial corridor with excellent visibility and access. The property serves as a key retail and logistics node within Home Depot’s regional network, offering high-volume sales across both in-store and digital channels, as well as supporting in-market fulfillment and contractor services.

Tenant Overview – Home Depot Inc.

The Home Depot Inc. (NYSE: HD) is the world’s largest home improvement retailer, operating more than 2,300 stores across North America. The company serves a diversified customer base that includes do-it-yourself homeowners, professional contractors, government agencies, and corporate facility managers. In fiscal year 2023, Home Depot generated over $150 billion in net sales and maintained its position as one of the most profitable and resilient retailers in the world.

Financial and operational highlights:

• Fortune 20 company
• Investment-grade credit rating (A from S&P, A2 from Moody’s)
• Over $150B in annual revenue
• Over 2,300 retail locations in the U.S., Canada, and Mexico
• More than 500,000 employees nationwide
• Massive omni-channel infrastructure: online orders, mobile app, curbside pickup, and same-day delivery
• Major supplier of building materials, tools, appliances, lawn & garden products, and professional services

Home Depot has invested heavily in digital transformation, logistics infrastructure, and professional customer services—ensuring its long-term relevance in both retail and commercial construction ecosystems. Its stores are operationally vital in fast-growing MSAs such as Raleigh, where residential and commercial construction are both expanding rapidly.

Lease Structure – Net Lease

The property is secured by a long-term, corporate-backed lease with Home Depot Inc. The lease is structured as a triple-net (NNN) agreement, with the tenant responsible for taxes, insurance, and maintenance. This structure allows for highly predictable income with minimal landlord responsibilities, ideal for 1031 exchange investors, private wealth capital, and institutional buyers.

Lease features typically include:

• Corporate guarantee by The Home Depot Inc.
• Triple-net lease structure – tenant pays real estate taxes, insurance, and most maintenance
• Long-term lease with multiple renewal options
• Stable income with periodic rent escalations depending on the lease terms
• Zero landlord responsibility for capital improvements or structural repairs

The passive nature of the lease allows investors to achieve consistent cash flow with exposure to one of the strongest retail credit tenants in the world.

Market Overview – Raleigh, North Carolina (Raleigh–Durham–Chapel Hill MSA)

Raleigh is part of the Research Triangle region, one of the most dynamic and educated MSAs in the country. The area is home to a high concentration of technology firms, biotech companies, academic institutions, and healthcare providers. Raleigh has consistently ranked among the top U.S. cities for population growth, business climate, workforce quality, and quality of life.

Market fundamentals:

• Raleigh MSA population exceeds 1.4 million
• Unemployment rate consistently below national average
• Home to three Tier 1 research universities: Duke, UNC Chapel Hill, and NC State
• Major employers include IBM, Cisco, Red Hat, SAS, Biogen, and WakeMed Health
• 18% population growth in the past decade; forecasted to continue
• Significant investment in transportation, mixed-use development, and housing

Raleigh’s status as a hub for innovation and business growth makes it a magnet for talent, real estate investment, and retail demand. The Home Depot property is ideally situated to serve this expanding population and workforce, many of whom are involved in construction, renovation, and suburban development.

Demographics – Surrounding Trade Area

The trade area surrounding the Home Depot location features a strong demographic profile that supports repeat visits and high average ticket purchases. Within a 5-mile radius:

• Total population exceeds 175,000
• Median household income exceeds $80,000
• High percentage of college-educated residents and professional households
• Strong residential growth in both urban infill and suburban neighborhoods
• Dense retail corridor with complementary national brands and service providers
• Consistent demand from homeowners, apartment managers, and contractors

Home Depot benefits from a dual-customer model in this location—serving both residential consumers and professional tradespeople. With high income levels, stable housing values, and strong DIY culture, this region supports steady in-store and curbside sales, project materials fulfillment, and Pro Desk usage.

Property Overview – Home Depot Store Format

Home Depot store formats typically range from 100,000 to 135,000 square feet and are designed to function as both retail and mini-distribution centers. The Raleigh location is expected to include standard operational features such as:

• Drive-up loading zones and pro parking areas
• Garden center with outdoor and seasonal merchandise
• Tool rental center
• Lumber and contractor materials section
• Pro Desk for business services, bulk orders, and job site support
• Dedicated e-commerce and mobile order fulfillment infrastructure
• Multi-lane cashier and self-checkout service zones
• High-volume front-end with customer service desk
• Receiving and staging bays for daily logistics

This operational model ensures that the store serves not only as a retail destination but as a logistical hub for in-market service professionals and rapid delivery orders.

Strategic Role in Omnichannel Growth

Home Depot has invested over $11 billion into its One Home Depot strategy—a plan to unify physical and digital operations across logistics, inventory, customer service, and e-commerce. In the context of this strategy, stores such as the Raleigh location are no longer just retail centers—they are critical infrastructure assets.

Strategic priorities include:

• Faster delivery and in-store pickup options
• Expanded e-commerce inventory visibility
• Integrated delivery from store (DFM) logistics
• Enhanced Pro loyalty and business account services
• Job site delivery and project-based pricing
• Investment in technology and automation across all store operations
• ESG initiatives including LED lighting, solar installations, and water conservation

These enhancements increase the long-term value of each location and decrease tenant turnover risk. For Raleigh—a market with heavy residential growth and commercial development—Home Depot’s strategic focus aligns perfectly with future demand drivers.

Investment Highlights

• Home Depot location in a top-growth MSA with excellent demographics
• Net lease with long-term corporate guarantee
• Passive income with minimal management requirements
• Strong real estate fundamentals: visibility, access, and traffic
• High-volume service center for both retail and contractor business
• Supported by Raleigh’s growth in homebuilding, tech, and biotech sectors
• National tenant with exceptional credit and lease retention metrics
• Dense trade area with over 175,000 residents and rising
• Property supports in-store, curbside, and digital retail demand
• Excellent candidate for 1031 exchange and long-term institutional hold

Conclusion

The Home Depot in Raleigh, North Carolina represents a best-in-class opportunity to acquire a long-term net lease asset in a blue-chip MSA with exceptional tenant strength and underlying real estate fundamentals. The combination of an investment-grade tenant, passive lease structure, and high-growth location make this a rare and highly attractive acquisition for both yield-focused and core real estate strategies.

Whether held for long-term income, leveraged for estate planning, or utilized as a 1031 exchange vehicle, this Home Depot property offers the security, scalability, and performance that today’s market demands. In a time where location, credit, and lease structure are paramount, this asset checks every box.