Why Invest in U.S. Post Offices?

Owning a United States Post Office is:

  • A SOLID INVESTMENT
  • OFFERS A GOOD RETURN
  • GUARANTEED BY THE UNITED STATES POSTAL SERVICE

What You Should Know

Post Office buildings typically cost between $250,000 and $2,500,000 to purchase and the lease by the United States Postal Service (USPS) is in full force prior to taking ownership. Features include:

1. Twenty year non-cancelable lease with two to four five-year options.

2. Sites are located throughout the United States, usually in small towns such as West Yellowstone, MT, Stanley, ID, Blairsden, CA, and Wendover, NV.

3.  Currently, returns for new units range from about 6.0% to 6.75% and prices are negotiated between the buyer and the owner/builder, not the USPS. Existing post offices have returns of 7% and up.

4. The preferred building maintenance agreement states that the USPS will be responsible for all maintenance except for the roof system and building structure. Owners carry casualty and liability insurance which cover most structural risks, and the new roofs come with twenty- to thirty-year warranties.

5. Building sizes range from under 1,000 sq. ft. to 10,000 sq. ft. on lot sizes ranging from under 3,000 sq. ft. to over three acres. All lots are very large compared to the building in order to allow for future expansion

6. All leases are flat throughout the base term and any increases would come at the commencement of each option period. Currently, fixed rate financing is available starting at about 6.5 %

7. Many leases contain purchase options which allow the USPS to purchase the building during stated periods in the lease at stated prices or at market value. History has shown that these purchase options are rarely if ever exercised.

8.  With new buildings, it is common to have purchase contracts negotiated between the owner/builder and investor prior to completion of the building and in many cases prior to the beginning of construction. Typical construction time is six to nine months and closing occurs only after the lease is in full force.