Naples Tractor Supply Store Sells for $11M — What It Signals in CRE Market

A recently opened Tractor Supply Co. store in Naples has just traded hands — and the deal offers insight into investor appetite for stable retail assets in Collier County.

What Went Down

• The property sits at the corner of Wilson Boulevard and Golden Gate Boulevard.

• A private investor, via a 1031 exchange, bought it for $11 million — roughly $1.08 million less than its asking price earlier in the year.

• The building spans 23,279 square feet on a 6.6-acre lot.

• The seller (an LLC connected to an Alabama firm) originally paid $3.75 million in 2023 for the site.

• Tractor Supply has a 15-year lease in place (began Sept. 2023), with built-in 5% rent increases every five years. The lease also allows up to four renewal terms of five years each.

• The rent is reported at $487.29 per square foot (which is steep, reflective of prime leased retail with long-term tenancy).

• The facility includes a garden center, feed center, and a large fenced outdoor display area (~20,000 square feet) for merchandise.

Why This Deal Matters to Naples / Commercial Real Estate

This isn’t just another sale — here’s what makes it significant:

1. Proof of investor confidence in single-tenant net-lease retail
   Tractor Supply is a credit-tenant with a long lock-in, which is precisely the kind of stable, low-management property many passive investors seek in volatile markets.

2. Market rent expectations being challenged
   The rent per square foot is high — not usual for every retail asset in Naples. It suggests that buyers are willing to pay premiums for tenant quality, location, and lease structure.

3. 1031 exchange fueling liquidity
   The buyer used a 1031 exchange, indicating this property likely replaced a sold investment elsewhere. That mechanism continues to be a tool to keep capital flowing into local CRE.

4. Limited supply & high barrier to entry
   Finding newly constructed, large-scale retail sites with long leases in growth corridors is rare. This asset ticks those boxes.

5. Implications for future retail deals
   Developers, brokers, and tenant-rep firms will likely reference this transaction as a benchmark for leasing, valuations, and cap rates.

Risks & Caveats to Keep an Eye On

• Tenant concentration risk. Even though Tractor Supply is a strong brand, single-tenant properties carry inherent rollover risk if the tenant departs at renewals.

• Interest rate sensitivity. Cap rates and valuations of net-leased retail are sensitive to changes in interest rates or credit spreads.

• Operational maintenance & land costs. Outdoor display spaces, landscaping, and structural maintenance are ongoing line items that matter in the real total return.

• Lease escalation logic. The 5% bump every five years is solid, but depending on inflation levels or market rent growth, that may or may not keep pace.