Dollar Store Cap Rates Sinking – Daily News Article – GlobeSt.com
– According to Boulder Group out of Chicago, CAP Rates for Dollar Stores are as follows: Dollar General- 7.26%, Dollar Tree- 7.75% and Family Dollar- 8.0%. The higher CAP rate for Dollar General is due to the fact that they typically sign 15 year, NNN leases, while Family Dollar typically signs for 10 years with a NN structure.
– Although there is demand for the entire sector, the most desirable dollar stores are those that are newly constructed. According to Boulder Group, “Dollar store properties built after 2012 are priced at a 100 bp premium over the entire dollar store market.”
Posted on December 3, 2013, in Development, General CRE News/Reports, Market Reports/Statistics, Single Tenant Net Leased (STNL), Transactions and tagged Dollar General, Dollar Tree, Family Dollar. Bookmark the permalink. Leave a comment.