Valvoline - Tenant Overview


January 5, 2024

Auto - Others

Tenant Description

Valvoline Inc. stands as a distinguished name in the auto maintenance sector, particularly noted for its quick, reliable, and transparent vehicle care services. Established in 1986, Valvoline has expanded its footprint to over 1,700 locations, making it a prominent and accessible choice in neighborhoods nationwide. This extensive network underpins its strategy of rapid, efficient service, including a full-service oil change completed in about 15 minutes. Additionally, Valvoline offers a range of maintenance services at competitive prices, often 30-50% lower than those of dealerships.

Valvoline's unique selling proposition lies in its combination of expertise, speed, and affordability. Its expert technicians and award-winning products ensure high-quality vehicle maintenance, contributing to the brand's strong reputation, as evidenced by its high customer ratings. Moreover, the company caters to a diverse clientele, including individual vehicle owners and fleet vehicles, ensuring broad market appeal.

Financially, Valvoline's stability is reflected in its BB credit rating from S&P. The company operates on a triple-net lease basis, with an average building size of 2,604 square feet and an average NOI of $92,814. This financial robustness is further highlighted by an average store sales figure of $1,479,655.

In terms of commercial real estate impact, Valvoline is a potent tenant due to its consistent foot traffic and contribution to the vibrancy of retail environments. Its presence in a commercial setting can enhance the appeal of the locale, attracting complementary businesses and customers.

Valvoline's expansion strategy is ambitious, with a long-term goal of reaching 3,500 locations. This growth trajectory not only demonstrates the brand's robust market position but also its potential as a stable and expanding tenant in the commercial real estate market.

In summary, Valvoline represents a highly desirable tenant in the commercial real estate sector, characterized by its widespread brand recognition, financial stability, and expansive growth strategy, all of which contribute to its appeal to landlords, investors, and real estate professionals.

Average Asking Cap Rate


3 mo. avg (192 properties)

Typical Investment/Lease

Average Sale Price




$/Square Foot


Building SF


Approx. Store Count


Lease Term

15 Years


10% Every 5 Years

Stock Symbol


Credit Quality



Average Asking Cap Rate Trend





Reflect only properties with long-term lease.

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