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chi-PropertyInfographicdollarstore The average cap rate in the net lease dollar store sector, defined as free-standing Dollar General, Dollar Tree and Family Dollar properties, increased 35 bps to 7.10% over the past year.

CHICAGO—Dollar stores remain one of the few portions of the retail sector impervious to e-commerce, and that attracts both developers and investors. But after several years of energetic buying, institutional investors have backed off, according to The Boulder Group’s new report on the net lease dollar store sector. The pause should open up opportunities for others, especially since builders have maintained a robust pace of new construction.

The average cap rate in the net lease dollar store sector, defined as free-standing Dollar General, Dollar Tree and Family Dollar properties, increased 35 bps to 7.10% over the past year, Boulder found. That rate is now 90 bps higher than the second quarter retail net lease rate of 6.2%. The company attributes the rise to a significant cap rate increase for Family Dollar properties because of a substantial decline in the average remaining lease term for these stores.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.

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