Dollar Store Cap Rates Sinking – Daily News Article – GlobeSt.com

Dollar Store Cap Rates Sinking – Daily News Article – GlobeSt.com.

Key Takeaways:
– 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.”

About Ernie Saltmarsh

Ernie works for Colliers International in the Northeast Florida Investment Services Group. The team includes Robert Selton, Scott Rogers, Ernie Saltmarsh and Adrienne Miller. Ernie works with buyers who are looking to invest in commercial real estate and sellers who are looking to dispose of investment assets. Ernie's background in research, marketing and finance provide the vital skills necessary to serve his clients.

Posted on December 3, 2013, in Development, General CRE News/Reports, Market Reports/Statistics, Single Tenant Net Leased (STNL), Transactions and tagged , , . Bookmark the permalink. Leave a comment.

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