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  Dollar Tree


Average Property & Lease

Average Sale Price$2,045,614
CAP Rate (12mo avg with 10+ lease term)6.68%
NOI$136,647
$/Square Foot$100 - $150
Building Size8,000 - 12,000 sf
Lot Size0.5 - 1.5 acres
Lease Term10 Years
EscalationsVaries
CREDIT RATING
BB+
S&P
Ba2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Dollar Tree is an attractive tenant for the Net Lease Investor who prioritizes a higher cap rate. New locations typically ranges between 8,000-12,000 gross sq. ft. Freestanding locations are typically located in a strong retail corridor with street presence, easy ingress/egress, and ample parking. Dollar Tree also targets regional or neighborhood centers anchored by "big box" discounters or dominant grocery stores for their stores. Though not as flashy as other prominent net lease tenants, Dollar Tree has found success focusing on its core consumer market of value minded customers.

Pros

Cons

  • Higher cap rates
  • Lower Price Point
  • Stable, value focused store model
  • NNN Leases available
  • Tertiary Market locations
  • No increases during primary term
Tenant Description

Headquartered in Chesapeake, VA, Dollar Tree is the largest and most successful single-price-point retailer in North America, operating across U.S. In June 2015, Dollar Tree acquired Family Dollar Stores, Inc. and its more than 8,200 stores, which now make Dollar Tree Inc, leading operator of 13,851 discount variety retail stores.

Dollar Tree stores sell all items for $1.00 or less. They targets middle-income customers in suburban locations usually in strip shopping centers anchored by large retailers who draw target customers that they believe to be similar to theirs. Their stores are successful in metropolitan areas, mid-sized cities and small towns. The range of the store sizes are 8,000 - 10,000 square feet for Dollar Tree and 6,000 - 8,000 square feet for Family Dollar, which allows them to target a particular location with a store that best suits that market and take advantage of available real estate opportunities. Dollar Tree plans to open new Family Dollar stores in strip shopping centers, freestanding buildings and downtown buildings. The range of size of Family Dollar stores allows them to select store locations in neighborhoods convenient to their customers in each of these market areas.

Dollar Tree intends to drive future store openings by capitalizing on insights regarding location, target customer profile, competitive dynamics and cost structure. Over the long-term, Dollar Tree plans to operate more than 7,000 Dollar Tree stores and 12,000 Family Dollar stores across the United States.


DOLLAR TREE TREND
CAP Rate

2015 avg: 7.23%

2016 avg: 7.25%

RECENT SALES

Portland, TN

$1,558,600 | 7.00%

Richmond, VA

$1,587,500 | 7.50%

MORE INFO
www.dollartree.com
Google Finance: DLTR
Google News: DLTR