Family Dollar Tenant Overview

Net Lease Advisor Tenant Family Dollar


  • Corporate guaranty
  • Rental escalations to offset inflation
  • Essential Retail


  • Mix of NN and NNN leases
  • Tertiary market locations

Earnings Highlights

Earnings Summary
  • Same-Store Sales: Family Dollar +5.8%; Enterprise +6.9%
  • Comparable Transaction Count: Family Dollar +3.4%
  • Increasing Fiscal 2023 Sales Outlook Range to $30.6 Billion to $30.9 Billion

Tenant Description

Family Dollar is a chain of discount retailers.

Dollar Tree acquired Family Dollar, Inc. in July 2015. Together they are considered the nation’s largest small-box discount retailer, operating over 14,000 stores nationwide. Family Dollar operates under a landlord friendly net lease structure. As a result, freestanding Family Dollar retail stores provide an attractive combination of a long-term lease and a growing market concept that continues to capture value conscious shoppers, which boosts store productivity.

With locations across 48 states, Family Dollar retail stores allow investors to evaluate property in metropolitan and rural settings. The typical Family Dollar net lease is 15 years with successive option periods of five (5) years each. The Family Dollar net lease typically requires minimal responsibilities from the landlord, limited only to roof & structural maintenance while the tenant is responsible for insurance, taxes and all other maintenance and repairs.

Recently, Family Dollar has offered sale leaseback with 15-year NNN leases along with build-to-suit programs that are structured as 15-year absolute NNN leases with 10% rent increases in year 10 or every five (5) years.

In November 1959, Leon Levine opened the first Family Dollar store in Charlotte, North Carolina, and was on his way to becoming a retailing legend. Leon Levine believed he could offer his customers a variety of high-quality, good value merchandise for under $2. The concept is a simple one, "The customers are the boss, and you need to keep them happy."

The average size of a Family Dollar store is between 6,000 and 8,000 square feet, and most stores are operated in leased facilities. This relatively small footprint allows the company to open new stores in rural areas and small towns, as well as in large urban neighborhoods. A general floor plan used in each of the stores allows customers to easily shop for their favorite products in any Family Dollar store. With the stores uniformly laid out and stocked, store managers are able to focus on providing good customer service. This concept for a self-serve, cash-and-carry neighborhood discount store in low to middle income neighborhoods proves so successful that today Family Dollar is a chain with over 8,000 stores from Maine to California.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,645,000
NOI $113,075
$/Square Foot $205 - $274
Building SF 6,000 - 8,000
Lot Size 0.5 - 1.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol DLTR
Credit Rating
Moody's Baa2
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Pontiac, MI 9.00%
Augusta, GA 6.50%
San Antonio, TX 5.85%