Investment-grade discount retail at accessible price points, from a buyer’s broker with 12 Dollar General closings in 6 states.
A Dollar General NNN property is a freestanding discount store, typically 8,500 to 10,640 square feet, leased to Dollar General Corporation on a 15-year absolute NNN lease with a corporate guarantee. Dollar General is rated BBB by S&P and Baa3 by Moody’s, which is investment grade, yet its stores trade at higher cap rates than most credit tenants. With most price points between $1 million and $2.5 million, Dollar General is one of the most accessible ways to own investment-grade NNN income and a common fit for smaller 1031 exchanges.
Solid Investments FL has represented buyers on 12 Dollar General transactions across 6 states, from Florida and Texas to South Dakota, Pennsylvania and California. See them in our track record. Our buyer representation is always free to you.
| Tenant / guarantor | Dollar General Corporation (NYSE: DG), corporate guarantee; confirm on each lease |
|---|---|
| Headquarters | Goodlettsville, Tennessee |
| Credit rating | S&P BBB / Moody’s Baa3 (investment grade) |
| Stores | 21,000+ in 48 states; about 80% serve towns of 20,000 people or fewer |
| Formats | Traditional Dollar General, plus larger DG Market and expanded-fresh formats |
| Typical lease term | 15 years on new construction |
| Lease type | Absolute NNN on new builds; some older stores are NN (landlord covers roof and structure) |
| Rent increases | Varies: many leases are flat during the base term with increases in the option periods; newer leases often include 5%–10% every 5 years |
| Renewal options | Multiple options, exercised at Dollar General’s discretion |
| Typical cap rate (2026) | ~6.5%–7.75% (2026 asking median about 7%); lower for new builds with rent increases |
| Typical price range | About $1M–$2.5M; larger formats higher |
Credit ratings as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
New stores are absolute NNN, but some older Dollar Generals are NN leases where the landlord pays for the roof and structure. Budget for those costs before comparing cap rates side by side.
Many Dollar General leases have flat rent for the full 15-year base term, with increases only in the option periods. A lease with scheduled bumps is worth paying more for.
Moody’s lowered Dollar General to Baa3 in March 2025, the lowest investment-grade rung, while S&P holds it at BBB with a stable outlook. Lease term and location quality carry extra weight.
Stores with 12 or more years left on a corporate-guaranteed lease are the simplest holds. Shorter terms trade at higher cap rates; our own closings have ranged from about 4.85% to 8.25%.
Most Dollar Generals serve small towns with little competition, which supports sales. The flip side: re-leasing a 9,000-SF box in a small town is harder, so look at the land, access and alternative uses.
Dollar General is opening about 450 new U.S. stores and completing 4,250 remodels in its current fiscal year, adding coolers and fresh food. A recently remodeled store is a good sign of corporate commitment to that location.
Dollar Generals are almost always sold fee simple, so you own the building and site improvements, and they are depreciable. The building itself is depreciated over 39 years, and that annual deduction can shelter much of your rental income. A cost segregation study goes further: it separates out parts of the property that can be written off much faster, and under current law that portion qualifies for 100% first-year (bonus) depreciation.
Unlike ground-lease tenants, where you own only the land, a Dollar General buyer owns the building and improvements, so there is real depreciable basis working for you every year you own it.
Parking lot, paving, site lighting, signage, landscaping and certain interior finishes and fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
A cost segregation study is a modest one-time cost. Your CPA can estimate the first-year benefit on a specific store before you commit, based on your purchase price and tax situation.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve helped buyers close 12 Dollar General transactions in 6 states. A few examples:
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Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on 12 Dollar General transactions across 6 states. We help investors and 1031 exchange buyers find, underwrite and close Dollar General properties nationwide, and our buyer representation is free.
As of 2026, Dollar General NNN properties are generally priced around 6.5% to 7.75%, with a median asking cap rate of about 7%. New-construction stores with scheduled rent increases trade at the lower end, while older stores, NN leases and shorter remaining terms trade higher. Our own closings have ranged from about 4.85% to 8.25%.
Yes. As of October 2026, Dollar General is rated BBB by S&P and Baa3 by Moody's, both investment grade. Moody's lowered its rating from Baa2 to Baa3 in March 2025, the lowest investment-grade level, so lease term and location quality deserve extra attention.
New-construction Dollar General leases typically run 15 years with multiple renewal options at Dollar General's discretion. Many leases keep rent flat during the base term with increases in the option periods, while newer leases often include 5% to 10% increases every five years.
With an absolute NNN lease, Dollar General pays taxes, insurance and all maintenance, including the roof and structure. With a NN lease, usually found on older stores, the landlord is responsible for the roof and structure. NN stores typically trade at higher cap rates to compensate for those costs.
For many investors, yes. Dollar General offers investment-grade corporate credit, absolute NNN leases on new stores and price points mostly between $1 million and $2.5 million, which makes it easy to match a smaller exchange or split a larger one across several stores.
Not on the building itself, which is 39-year property. However, a cost segregation study can reclassify site work, paving, lighting, signage and certain interior items into 5-, 7- and 15-year property. With 100% bonus depreciation permanent for property acquired after January 19, 2025, that reclassified portion can be deducted in year one. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed Dollar General deals from Florida to South Dakota. Tell us your budget and timeline; our buyer representation is completely free.
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