Five Below
Interested in selling your Five Below NNN property or Five Below ground lease property and 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 Five Below NNN property for sale or Five Below ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your Five Below NNN property or the inclusion of a Five Below
ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Five Below properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of January 2024, Five Below operates over 1,500 stores across 40+ states in the United States. The company has a broad national footprint, with strong concentrations in suburban and urban retail corridors.
Revenue and income
In fiscal year 2022, Five Below reported total revenue of approximately $3.3 billion. The company generated net income of about $227 million, reflecting the strength of its high-volume, value-oriented retail model.
Future plans
Five Below plans to continue aggressive expansion across the United States, with long-term goals of operating more than 3,500 stores nationwide. The company continues to invest in new store openings, supply chain improvements, and merchandising expansion, including the rollout of its higher-priced “Five Beyond” concept.
Corporate vs. franchise
Five Below stores are 100% corporate-owned and operated. The company does not offer franchise opportunities, allowing it to maintain consistent branding, pricing, and operational control across all locations.
Additional information – Five Below Properties
Five Below was founded in 2002 in Philadelphia, Pennsylvania by David Schlessinger and Tom Vellios.
The company’s name reflects its original pricing strategy of offering products priced at $5 or below, primarily targeting teens and value-conscious shoppers.
Five Below is a specialty value retailer known for selling trend-right merchandise, including toys, games, tech accessories, beauty items, snacks, and seasonal products.
Five Below is a publicly traded company (NASDAQ: FIVE) and is headquartered in Philadelphia, Pennsylvania.
Five Below History
Five Below was founded in 2002 in Philadelphia, Pennsylvania by David Schlessinger and Tom Vellios with the goal of creating a fun, value-driven retail concept aimed primarily at teens and value-conscious shoppers. The company introduced a unique pricing strategy focused on offering trend-right products priced at $5 or below, which helped differentiate it from traditional discount retailers.
Over the years, Five Below evolved into a fast-growing specialty value retailer by expanding its product assortment to include toys, games, tech accessories, beauty items, snacks, home décor, and seasonal merchandise. The brand’s colorful store layout, frequent product refreshes, and focus on affordable trends fueled rapid nationwide expansion.
Today, Five Below operates over 1,500 stores across the United States and continues to grow its footprint through new store openings and the expansion of its “Five Beyond” assortment. The company remains focused on innovation, value, and customer experience, positioning Five Below as a prominent player in the value retail industry.
Why Invest in Ground Lease and NNN Lease of Five Below?
Investing in Five Below ground lease and triple net (NNN) lease properties offers compelling reasons for investors seeking stable income from a value-oriented retail tenant:
1) Five Below NNN Property Investment: Stable value-driven income
Five Below’s discount retail model attracts consistent customer traffic across economic cycles, supporting reliable rental income under long-term ground and NNN lease structures.
2) Five Below NNN Property Investment: Established national tenant
With over 1,500 locations nationwide and a strong brand presence, Five Below’s recognizable name and proven growth strategy help reduce vacancy and lease default risks.
3) Five Below NNN Property Investment: Low management responsibility
In ground and NNN leases, Five Below typically assumes responsibility for property taxes, insurance, and maintenance, minimizing landlord management obligations.
4) Five Below NNN Property Investment: Favorable long-term lease terms
Five Below properties are commonly secured by long-term leases with built-in rent escalations, providing predictable income and potential rental growth.
5) Five Below NNN Property Investment: Strong real estate fundamentals
Five Below stores are often located in high-traffic power centers and retail corridors, which can enhance long-term property value and provide potential capital appreciation.
Pros and Cons of Five Below Ground Lease and NNN Lease Investment
Pros:
Stable income supported by a well-established national value retail brand with consistent customer demand.
Established tenant presence reduces vacancy risk and enhances lease security.
Minimal management responsibility for landlords, as Five Below typically covers taxes, insurance, and maintenance under NNN and ground lease structures.
Long lease terms provide income stability and potential rental growth through built-in rent escalations.
Cons:
Lease renewal risk exists when the lease term expires.
Dependence on Five Below’s operational performance and ability to adapt to changing consumer preferences.
Competition within the discount and specialty retail sector may impact store performance.
Limited control for landlords over property and operational decisions during the lease term.
Economic conditions and shifts in retail trends can affect real estate performance and exit value.
orough due diligence and careful evaluation of location quality, lease structure, tenant strength, and investment strategy are essential. Investors should seek guidance from experienced real estate and financial professionals to align investments with their goals and risk tolerance.