High customer traffic, high visibility, and a brand that is synonymous with low prices makes Dollar General stores some of the most sought-after commercial real estate investments on the market today. From retail shopping centers to rural strip malls, Dollar General stores can be found in almost every type of location imaginable. And with a strong corporate lease in place, investors can enjoy stable, long-term returns with very little hassle.
If you’re looking for a sound investment that will provide you with reliable income for years, then considering a Dollar General NNN property for sale is a wise move.
Why Are Dollar General Stores So Popular?
There are a number of reasons why Dollar General stores are such popular investments. The fifteen years lease with Dollar General is one of the strongest in the industry. This means that, as an investor, you can count on a steady stream of income for the duration of the lease
Also, finding ten percent price escalations in the lease every five years helps to ensure that your investment keeps pace with inflation.
The Pros and Cons of Investing in a Dollar General NNN for Sale
While there are many advantages to investing in a Dollar General NNN for sale, there are also a few potential drawbacks that you should be aware of. Let’s go through each of them so you can make an informed decision about whether or not this type of investment is right for you.
Dollar General Stores are highly visible: This type of store is typically located in high-traffic areas that receive a lot of foot traffic. This visibility can help to attract new customers and increase sales.
Low price: In most cases, the prices at Dollar General are lower than those of other retail stores. This can attract a wider range of customers, including budget-conscious shoppers.
Investor-grade credit: It indicates a low risk of credit default making it easier to finance the purchase of a Dollar General store.
Landlord accountability: NNN leasing takes the burden of property maintenance and upkeeps off of the tenant’s shoulders. However, this also means that the landlord is held accountable for any necessary repairs or renovations. This can be a significant expense, particularly if the store is located in an older shopping center.
Visible in small local markets: The small size of some Dollar General stores can make them more visible in smaller local markets. That means that they may be more susceptible to competition from larger stores in the area.
Are you having second thoughts about whether or not a Dollar General NNN store is the right investment for you? Our team of experienced commercial real estate brokers at Net Lease World can help you make an informed decision. We’ll provide you with all the information you need about this type of investment, as well as a list of properties that fit your budget and investment goals.
Learn your options by calling us today!
Dollar General Triple Net Lease for Sale
For many commercial real estate buyers, having a property that provides a steady stream of income is key. That’s why triple-net lease properties can be such a good investment. These properties have been a mainstay of the real estate market for many years, and they continue to be popular with both investors and businesses looking for a place to lease.
Why Choosing Triple Net Lease Properties Makes Good Business Sense
There are many reasons why a business might choose to lease a triple-net lease property. For one thing, these properties are very popular with many customers. They offer a wide variety of locations and often have good visibility from major highways. This makes them easy for customers to find, which can be a big advantage for businesses that want to attract a lot of foot traffic. Also, Dollar General stores are a one-stop shop for different merchandise such as jewelry, groceries, housewares, and toys which makes them a convenient option for busy customers.
The Pros and Cons of Dollar General Triple Net Lease for Sale
Though having many advantages for both landlords and tenants, Dollar General’s triple-net lease for sale can also have some disadvantages. Let’s go through each, so you can decide if this type of property is right for your investment portfolio
Less duties for landlords: Less insurance, maintenance, and tax responsibilities fall on landlords with a triple-net lease. This means that, in general, there is less wear and tear on the property over time.
Stable income: Flat rent and fixed increases are typical in a triple-net lease agreement. This means that landlords can have a more predictable income stream from their property.
Long lease terms: Since businesses are looking for stability when they sign a triple-net lease, leases often have long terms. This can provide landlords with years of guaranteed income from their property.
Capped earnings: Depending on the terms of the lease, landlords may have a cap on how much they can earn from their property. Though having a stable cash flow, without a fixed increase agreement can be seen as an upside, it may limit how much money a landlord can make in the long run.
Risk of vacancy: Since long-term leases are most common with triple-net lease agreements, landlords may have a harder time filling a vacancy if a tenant decides to leave early. Vetting tenants carefully and making sure they are a good fit for your property can help mitigate this risk.
Know Your Options
If you are interested in pursuing a triple-net lease property, be sure to do your research and understand all the pros and cons before making a decision. One thing you can do is work with an experienced real estate agent who specializes in these types of properties.
Contact Net Lease World today and we’ll help you find the perfect triple-net lease property for your investment portfolio.
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