Dollar Tree Tenant Overview

Net Lease Advisor Tenant Dollar Tree


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


  • Tertiary market locations
  • No increases during primary term
  • Shorter lease terms

Earnings Highlights

Earnings Summary
  • Dollar Tree delivered its strongest quarterly (2021) same-store sales since 2017, while improving its operating margin by 290 basis points
  • Consolidated Q1 2021 Net Sales increased 3.0% to $6.48 Billion
  • Same-Store Sales: Enterprise +0.8%; Dollar Tree +4.7%; Family Dollar -2.8%

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. In June 2015, Dollar Tree acquired Family Dollar Stores, Inc. and its’ more than 8,200 stores, which made Dollar Tree Inc, the leading operator of discount variety retail stores with 13,600 locations. Today, they now operate over 15,000 locations across the US.

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.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,800,000
NOI $126,000
$/Square Foot $150 - $225
Building SF 8,000 - 12,000
Lot Size 0.5 - 1.5 Acres
Lease Term 10 Years
Escalations Varies
Stock Symbol DLTR
Credit Rating
Moody's Baa3
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Denton, TX 6.39%
Visalia, CA 6.40%
Thomasville, NC 6.90%
Baraboo, WI 7.26%