Broadstone Net Lease has acquired land in Manor and begun work on new build-to-suit projects for Hobby Lobby and Academy Sports. The developments were sourced directly as off-market transactions and are planned as long-term, single-tenant retail assets for the net lease REIT. Both projects are scheduled to be completed and delivered in the second quarter of 2027.
The planned Hobby Lobby and Academy Sports stores are described as 55,000 square feet, with each tenant signing a 15-year lease. The leases feature modest annual rent escalations tailored to each retailer. Hobby Lobby’s lease includes 0.5% annual rent increases, while Academy Sports will see 0.4% annual rent escalations over the term. These terms position the assets as stable, income-focused holdings for Broadstone’s portfolio.
Broadstone is targeting the second quarter of 2027 as the delivery window for both retail projects in Manor. The build-to-suit structure aligns the developments closely with the operating requirements of Hobby Lobby and Academy Sports, which are committing to the locations on long-duration leases from the outset of construction.
The projects add to Broadstone Net Lease’s existing footprint as an industrial-focused, diversified net lease REIT. The company invests primarily in single-tenant commercial properties that are net leased on a long-term basis. According to the firm, its diversified portfolio comprises 766 individual net-leased commercial properties. Of these assets, 759 are located across 44 U.S. states and seven properties are in four Canadian provinces, spanning industrial, retail, and other property types.
The Manor projects also coincide with Academy Sports’ broader expansion plans. The retailer expects to open 20 to 25 new stores in its fiscal year 2026, indicating continued growth in its brick-and-mortar platform. The new build-to-suit location with Broadstone is one component of that planned store rollout.
By pairing newly constructed, single-tenant retail properties with long-term leases and built-in annual escalations, Broadstone is adding contracted cash flow to its portfolio while accommodating the expansion strategies of both Hobby Lobby and Academy Sports. The developments, once delivered, will further diversify Broadstone’s net-lease holdings across retail and other property sectors.
