Dollar General Tenant Overview

Net Lease Advisor Tenant Dollar General


  • New leases absolute NNN lease
  • Lower price point
  • High visibility and good access
  • Essential Retail


  • Tertiary market locations
  • Older leases can be double net- roof and structure

Earnings Highlights

Earnings Summary
  • tore facility costs increased 25 basis points primarily due to higher repairs and maintenance expenses as we focus on store conditions for our customers and associates, and higher utility costs, partially offset by leverage from the comparable store net sales increase.
  • Operating income margin decreased to 3.9% for the 13 weeks ended July 29, 2023 compared to 7.5% for the same period last year, resulting from the decrease in gross profit margin and the increase in the selling, general and administrative expense rate, as described above.

Tenant Description

Dollar General is one of the largest dollar store chains in the US, offering deep discounts on a wide array of products.

From a net lease point of view, Dollar General is appealing given its lower price points, respectable sales record, and corporate expansion strategy in a growing market segment. Dollar General's new store model is approximately 9,100 square feet on 1.00 acre of land to accommodate a minimum of 30 parking spaces. Dollar General net lease properties have high visibility and full ingress/egress along retail corridors with good traffic. Higher cap rates and lower price points result in a larger pool of qualified buyers.

All Dollar General net leases have a corporate guarantee and typically new stores are NNN with 15-year initial terms. Newly built Dollar General properties have lease terms that usually include 10% bumps every five (5) years and in options, making it a sought-after passive investment deal for out-of-state investors. A significant portion of the new stores are subject to build-to-suit arrangements.. Older stores generally are NN where the landlord is responsible for roof and structure and have higher cap rates. These older stores with NN leases can be subject to shorter terms, usually 10-year leases.

Dollar General is a publicly traded company that started in 1939 by J.L. Turner in Kentucky. Dollar General offers a broad selection of merchandise, including consumables, seasonal, home products and apparel.

The stores generally feature a low-cost, no frills building with limited maintenance capital, low operating costs, and focused merchandise offering within a broad range of categories. 70% of the stores are located in towns of 20,000 or fewer people.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $1,650,482
NOI $99,687
$/Square Foot $165 - $183
Building SF 9,000 - 10,000
Lot Size 1.0 acres
Lease Term 10 - 15 Years
Escalations In Option Periods
Stock Symbol DG
Credit Rating
Moody's Baa2
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Spring Hill, FL 5.73%
Albany, WI 6.58%
Albrightsville, PA 7.50%