Home Depot

Home Depot – Houston, TX (Sugar Land Area – Fort Bend County)

This Home Depot location in the Sugar Land area of Houston, Texas offers investors a high-credit, long-term net-leased asset backed by The Home Depot Inc., the world’s largest home improvement retailer. Positioned in one of the most desirable and affluent submarkets of the Houston metropolitan statistical area (MSA), this asset serves as a critical retail and distribution node supporting professional contractors, residential consumers, and e-commerce fulfillment across Fort Bend County.

The subject property is a full-format, freestanding Home Depot store strategically located in a high-growth trade area with exceptional demographics, daily traffic counts, and access to a robust consumer base. The site benefits from long-standing performance, strong customer demand, and regional importance within Home Depot’s logistics and omnichannel service network. It serves both as a primary retail location and a last-mile fulfillment center for online orders, Pro customer deliveries, and mobile transactions.

With a passive triple-net lease, corporate guarantee, and exceptional underlying real estate, this property aligns with the acquisition criteria of institutional net lease investors, 1031 exchange buyers, REITs, and family offices seeking secure, long-duration income in a supply-constrained, high-demand Texas market.

Tenant Overview – The Home Depot Inc.

The Home Depot Inc. (NYSE: HD) is the dominant home improvement retailer in North America. With over 2,300 stores and approximately $150 billion in annual sales, Home Depot serves a broad customer base across residential, commercial, and government sectors. The company’s ability to scale logistics, innovate digital and mobile platforms, and serve both DIY consumers and professional contractors has made it one of the most operationally sophisticated and financially secure retail tenants in the net lease space.

As of 2023, Home Depot maintains an A credit rating from Standard & Poor’s and an A2 rating from Moody’s. The company employs more than 500,000 associates and continues to invest in fulfillment centers, distribution automation, and omnichannel retail systems to enhance speed and customer experience. Its Pro Xtra loyalty platform, tool rental programs, and mobile app services are designed to maximize transaction frequency and customer retention in markets like Houston.

Tenant financial highlights:

• Fortune 20 ranking by revenue
• Over $150 billion in net annual sales
• More than 500,000 employees nationwide
• Over 2,300 store locations
• More than $15 billion invested in supply chain and omnichannel logistics since 2017
• Investment-grade corporate guarantor with zero history of default
• 95 percent of U.S. population within 10 miles of a Home Depot store

With an ever-expanding suite of services—tool rental, in-store pickup, job site delivery, installation services, and project financing—Home Depot locations have become essential community infrastructure across the country.

Lease Structure – Triple Net (NNN)

This property is subject to a corporate-backed, long-term triple-net lease (NNN), where Home Depot is responsible for all property-related expenses, including taxes, insurance, and maintenance. This lease structure offers investors a truly passive income stream backed by an investment-grade tenant with national credit and an outstanding track record of lease renewal.

Key lease features typically include:

• Corporate lease guaranty by The Home Depot Inc.
• Triple-net structure – tenant responsible for taxes, insurance, maintenance, and repairs
• Long initial lease term with multiple 5-year renewal options
• Predictable rental escalations depending on lease terms
• No landlord obligations for capital improvements or building systems
• Ideal for 1031 exchange, estate planning, and passive income strategies

Properties with triple-net leases backed by Fortune-rated tenants are the gold standard in the commercial real estate industry for long-term income and stability.

Market Overview – Houston, Texas MSA

Houston is the fourth-largest city in the United States and one of the fastest-growing MSAs in the country, with a population exceeding 7.3 million. As a global energy capital and an increasingly diversified economy, Houston supports major employment sectors such as aerospace, advanced manufacturing, life sciences, education, and logistics. It has consistently ranked in the top five for net migration, new housing permits, and corporate relocations.

Houston’s business-friendly environment, affordable cost of living, and absence of a state income tax continue to attract companies, entrepreneurs, and families at scale. The Greater Houston Partnership estimates that the region will add over 1 million people by 2030, further driving demand for residential and retail development.

Houston market fundamentals:

• 7.3 million residents in the metro area
• 2.4 percent annual population growth rate
• Top five U.S. market for new home construction
• Major employers include Chevron, Shell, United Airlines, Houston Methodist, and H-E-B
• Home to the Texas Medical Center – largest medical complex in the world
• Two international airports and multiple Class I rail terminals
• Strong labor force and homeownership base

Houston’s scale, resilience, and job creation provide a long-term growth engine for retailers like Home Depot and support continued demand for home improvement and contractor supply services.

Submarket Spotlight – Sugar Land / Fort Bend County

Sugar Land is one of Houston’s most affluent and desirable suburban communities, known for its master-planned neighborhoods, highly rated schools, and excellent transportation access. Located in Fort Bend County, one of the fastest-growing counties in Texas, Sugar Land offers a stable population base with high levels of homeownership and discretionary spending.

Key demographics within a 5-mile radius of the subject property:

• Population exceeding 190,000
• Median household income over $110,000
• High homeownership rate and low vacancy
• Highly educated resident base with a large concentration of professionals and executives
• Exceptional school districts and low crime rates
• Significant new housing and retail development in surrounding areas

The area’s growth is fueled by its position along the U.S. 59 corridor and proximity to major job centers in Houston and the Energy Corridor. The subject Home Depot location serves as a regional anchor for both retail traffic and contractor services, benefiting from high vehicle counts and repeat customer patterns.

Property Overview – Home Depot Building Format and Features

This Home Depot property features a prototypical full-size store layout, optimized for maximum functionality across retail sales, professional contractor services, and logistics.

Typical building features include:

• Approximate building size of 105,000 to 130,000 square feet
• Garden center and outdoor seasonal product staging
• Tool rental and equipment sales area
• Pro Desk for contractor and business account services
• Lumber and building supply sections
• Automated pickup lockers and online order processing
• Curbside fulfillment and staging area for job site deliveries
• Drive-in loading zones and ample parking for commercial vehicles

The site’s design supports a wide variety of uses, from residential weekend DIY projects to multi-trade contractor order fulfillment, all backed by Home Depot’s robust digital and mobile ordering system.

Strategic Relevance – Last Mile and Contractor Fulfillment

In the Sugar Land trade area, this Home Depot serves not only as a retail destination but as a logistics and fulfillment asset. Its integration into Home Depot’s One Supply Chain strategy allows it to support:

• Same-day or next-day delivery for online and mobile orders
• Direct-to-jobsite shipping for Pro customers
• Click-and-collect locker systems for convenient pickup
• Local staging for major appliance, flooring, and kitchen orders
• Consolidation of retail, logistics, and returns at one property

As Houston’s residential base continues to expand west and south, stores like this will be critical to Home Depot’s ability to scale delivery, optimize inventory, and support Pro Xtra loyalty programs, which now account for a growing share of total company revenue.

Investment Highlights

• Nationally recognized, investment-grade tenant (NYSE: HD)
• Triple-net lease with corporate guaranty and limited landlord responsibilities
• Located in Sugar Land, one of the Houston MSA’s most affluent and growing submarkets
• Dense, high-income trade area with strong contractor and residential demand
• Full-format building serving retail, logistics, and Pro business functions
• Strategic location near major highways and commuter routes
• Strong demographics with population and income growth
• Excellent visibility, traffic flow, and repeat customer base
• Ideal for 1031 exchange, long-term hold, or portfolio diversification
• Tenant with high lease retention and national renewal history

Conclusion

The Home Depot in Sugar Land, TX (Houston MSA) presents a compelling opportunity for investors seeking secure, long-term income from a mission-critical, single-tenant retail property. Backed by an investment-grade corporate lease, located in a high-performing submarket, and supported by robust demographic growth, this asset offers the rare combination of passive income, strategic real estate, and national tenant strength.

As demand for housing, construction materials, and professional services continues to rise throughout Texas, this Home Depot store is poised to deliver durable income and value stability for decades to come. It stands as a model example of high-credit, net-leased retail investment in a top-tier growth market.