Dollar Tree TENANT OVERVIEW


Pros

  • Higher cap rates
  • Lower price point
  • Stable, value focused store model
  • NNN leases available

Cons

  • Tertiary market locations
  • No increases during primary term

Tenant Description

Dollar Tree is a chain of discount stores that sell all items for $1.00 or less.

Dollar Tree is an attractive tenant for the Net Lease Investor who prioritizes a higher cap rate. New locations typically ranges between 8,000 - 12,000 gross square feet. Freestanding locations are typically located in a strong retail corridor with street presence, easy ingress/egress, and ample parking. Dollar Tree also targets regional or neighborhood centers anchored by "big box" discounters or dominant grocery stores for their stores. Though not as flashy as other prominent net lease tenants, Dollar Tree has found success focusing on its core consumer market of value minded customers.

Headquartered in Chesapeake, VA, Dollar Tree is the largest and most successful single-price-point retailer in North America, operating across US. In June 2015, Dollar Tree acquired Family Dollar Stores, Inc. and its’ more than 8,200 stores, which now make Dollar Tree Inc, leading operator of 13,600 discount variety retail stores.

Dollar Tree intends to drive future store openings by capitalizing on insights regarding location, target customer profile, competitive dynamics and cost structure. Over the long-term, Dollar Tree plans to operate more than 7,000 Dollar Tree stores and 12,000 Family Dollar stores across the United States.

finviz dynamic chart for  DLTR
Average Cap Rate
6.53%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,891,251
NOI $123,499
$/Square Foot $150 - $230
Building SF 8,000 - 12,000
Lot Size 0.5 - 1.5 Acres
Lease Term 10 Years
Escalations Varies
Stock Symbol DLTR
Credit Rating
S&P BB+
Moody's Ba1
Average Cap Rate Trend
6.92%
2016
7.35%
2017
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Milford, OH 6.85%
Snellville, GA 7.75%
Orlando, FL 6.10%