In the second quarter, national asking cap rates in the single-tenant dollar store sector decreased to 6.98 percent, falling to a three-year low, according to the 2020 Net Lease Dollar Store Report from The Boulder Group.
Even with that compression, which was a decline of 12-basis points year-over-year, the dollar store sector is priced at a 73-basis point discount to the overall net lease retail market, according to Randy Blankstein, President of The Boulder Group.
While the net lease market experienced a 20-percent decline in transaction volume through the first two quarters of 2020, transactions in the single-tenant dollar store sector increased by approximately 3 percent.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
