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Investors are constantly asking me what Dollar General investment properties are selling for in today’s market. My answer is usually “That depends”. I am seeing a large differential in sales prices based on the lease structure that is in place.

The two most common lease structures you will find Dollar General operating under are double net (NN) and triple net (NNN). Under a double net lease the Landlord is responsible for roof, structure and parking lot maintenance at the minimum. This lease structure will not be as attractive to investors that live far away from the property. Under a triple net lease the Landlord has no maintenance responsibilities whatsoever. The latter is much more palatable for out of town investors  just looking to park capital. To test this theory I have taken a snapshot of all the Dollar General investment sales in North and South Carolina over the last 12 month period. As you can see the newly constructed DG properties on triple net leases are all selling for sub 7% CAP rates.