Dollar General

Interested in selling your Dollar General NNN property or Dollar General lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Dollar General NNN property for sale or Dollar General ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Dollar General NNN property or the inclusion of a Dollar General ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Dollar General properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Dollar General has over 18,774 stores in 47 states, plus the District of Columbia and Puerto Rico. This makes it the largest dollar store chain in the United States.

Revenue and income

In 2022, Dollar General’s total revenue was $37.9 billion. Net income was $3.1 billion.

Future plans

Dollar General plans to continue expanding its store count in the United States. In 2023, the company plans to open over 1,000 new stores. Dollar General also invests in new technologies, such as self-checkout and mobile ordering.

Corporate vs. franchise

About 90% of Dollar General stores are franchised. The remaining 10% are corporate-owned. Franchisees generally incur a franchise fee of $25,000, coupled with a 5% royalty fee calculated on gross sales.

Additional information Dollar General Properties

In 1939, Dollar General’s inception occurred in Scottsville, Kentucky.
The company’s name refers to the fact that the first store was open six days a week, from 7 am to 9 pm.
Dollar General is the second largest discount retailer in the United States, after Walmart.
The company’s most popular products include groceries, household goods, and health and beauty items.
Dollar General is a publicly traded company on the New York Stock Exchange.

Dollar General History

The origins of Dollar General can be traced back to 1939, marked by J.L. Turner’s establishment of a small variety store in Scottsville, Kentucky. The company’s name was inspired by the fact that the store was open from 7 am to 9 pm, six days a week. Dollar General quickly expanded throughout the southeastern United States, and by the 1960s, it had become the largest variety store chain in the region.In the 1970s, Dollar General began expanding into new markets, including the Midwest and Southwest. The company expanded its offerings to encompass a broader range of products, incorporating groceries, household essentials, and health and beauty items. Today, Dollar General is the second largest discount retailer in the United States, with over 18,000 stores in 47 states.

Why Invest in Ground Lease and NNN Lease of Dollar General?

Investing in Dollar General’s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Dollar General NNN Property Investment: Stable income

Dollar General is a well-established company with a strong track record of profitability. This means there is a low vacancy or lease default risk, which can provide reliable income for investors.

2) Dollar General NNN Property Investment: Established tenant

Dollar General is a recognizable brand with a loyal customer base. This makes it a desirable tenant for landlords, as there is a low risk of the tenant going out of business.

3) Dollar General NNN Property Investment: Low management responsibility

In-ground and NNN leases, the tenant manages property maintenance and expenses, minimizing the landlord’s management obligations.

4) Dollar General NNN Property Investment: Favorable lease terms

Dollar General typically offers long lease terms with built-in rent escalations. This provides predictable income and potential rental growth for investors.

5) Dollar General NNN Property Investment: Real estate value

Dollar General’s stores are typically located in high-traffic areas, which can increase property value over time. This can provide a potential capital appreciation for investors.

Pros and Cons of Dollar General Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.

Cons:

1. Lease renewal risk when the term expires.
2. Dependency on Dollar General’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.

Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.