Buying Hobby Lobby Stores for Sale: A Quick Guide for New NNN Investors

One area of real estate investment that has been attracting investors with its perks is the triple net lease (NNN). In a way, it removes a lot of responsibilities from the landlord, while allowing them to earn passive income for the long term.

However, NNN investing requires you to find creditworthy tenants with a good track record of paying rents. This ensures you will not end up in a situation where they default on their payments, which can lead to losses.

With that said, you can consider investing in Hobby Lobby stores for sale. If you are new to this kind of endeavor, let this article serve as your guide.

About Hobby Lobby

Hobby Lobby is a chain of arts and crafts stores in the US, with over 750 locations. It was founded in 1972 by David Green and currently employs around 27,000 people. The company is known for its Christian values, which are displayed throughout the store.

The Hobby Lobby brand is highly recognizable and has a strong customer base. This makes it an attractive investment opportunity for those looking for stability and long-term returns.

Why Invest in Hobby Lobby Real Estate for Sale

There are several reasons why you should consider investing in Hobby Lobby stores for sale.

Fewer Landlord Responsibilities

Hobby Lobby properties come with a triple net lease agreement, which means that the tenant is responsible for all of the property’s expenses, such as taxes, insurance, and maintenance.

This is ideal for investors who do not want to worry about things like repairs and upkeep. It also frees up your time so you can focus on other aspects of your business.

Stable Returns Over Time

Investing in a Hobby Lobby triple net lease guarantees you stable and predictable returns over time. The company has a long track record of being a reliable tenant and has never filed for bankruptcy.

In addition, the company is known for its customer loyalty which translates into consistent sales growth year after year.

Also read: The Best Real Estate Value Proposition Examples

Protection from Expense Increases

An NNN agreement protects you from any sudden increases in expenses. This is because the tenant will be the one responsible for all of the property’s costs, including any hikes in taxes or insurance premiums.

High Brand Recognition

As mentioned earlier, Hobby Lobby is a highly recognizable brand with a large customer base. This gives the store an edge over its competitors and makes it less likely to suffer from losses in the event of a recession.

Growing Market

The arts and crafts industry in the US is a growing market. In fact, Market Watch forecast the industry to reach a market value of $54,530 million by 2026, with a compound annual growth rate (CAGR) of 3.9%. On a global level, it is currently worth an estimated $44 billion and is projected to grow at a rate of about 4% annually. This provides investors with the potential for healthy returns in the long run.

Steps to Take When Investing in Hobby Lobby Triple Net Lease

It is important to remember that not all NNN properties are created equal. That is why you should do some due diligence on your part to ensure you are making the best investment possible. Here are the steps that you should take.

1. Assess the location.

This will give you an idea of how well the store is doing and whether or not it is likely to continue growing. You should also take into account things like competition from other stores in the area and the potential for expansion. If you are feeling unsure, you can always consult with a real estate agent who specializes in retail properties.

2. Review the lease term.

The lease term is another important factor to consider when investing in Hobby Lobby real estate for sale. Make sure that the lease agreement is for a minimum of five years so you can be assured of consistent returns over time.

You should also look for a tenant who is stable and has a good reputation. This will help protect your investment from any unforeseen events.

3. Determine the property’s capitalization rate (cap rate).

The cap rate is a key metric that you should use to measure the profitability of a property. It is calculated by dividing the annual net operating income (NOI) by the purchase price.

This will give you an idea of how much return you can expect on your investment. A higher cap rate means a better investment opportunity.

You can use the following formula for this step:

Cap Rate = Annual Net Operating Income / Purchase Price

4. Seek the help of an NNN expert.

This will ensure that you are making a wise investment and avoid any potential pitfalls. An NNN specialist can help you find the best property deals and navigate through complex lease agreements. They will also be able to provide you with valuable insights into the industry so you can make informed decisions.

5. Have a real estate lawyer by your side when reviewing the contract.

With a lawyer who specializes in real estate, you will be able to protect your interests and ensure that the contract is fair and reasonable.

A good lawyer can also help you negotiate better terms with the seller. They will be able to review the lease agreement and identify any potential problems or red flags.

How to Search for Hobby Lobby Investment Properties

The easiest place to find Hobby Lobby properties is the internet.  You can use a variety of online resources to find stores that are for sale in your area.

However, it is important to remember that not all Hobby Lobby stores are for sale. The best way to find out is to contact the seller directly. You can also consult a real estate agent who specializes in retail properties, as they may have access to the information that you need.

Different Ways to Invest in Hobby Lobby Stores

When purchasing Hobby Lobby investment properties, there are several ways you can do so.

  • Purchase existing stores – You can purchase an existing property from another investor or the company itself. This is the most common way to invest in Hobby Lobby real estate.
  • Franchise new stores – If you want to get involved in Hobby Lobby franchising, you can do so by contacting the company. This option allows you to have more control over the store and its operations.
  • Invest in commercial property – You can also invest in commercial real estate that houses a Hobby Lobby store. This option gives you more flexibility in terms of location and tenant.


Investing in Hobby Lobby stores for sale is a great way to earn passive income while taking advantage of a stable and growing industry. If you are new to this type of investment, though, be sure to do your research first to ensure you make wise choices. With careful planning, you can enjoy years of consistent returns from this venture.

For more information that you can use for business and real estate, feel free to check out the other articles on our site!