What might seem to an outsider to be odd times in the dollar store industry is actually what an insider would expect, according to a new B+E report. Even as the Federal Reserve had kept the benchmark federal funds rate through the third quarter, the average cap rate for dollar stores grew from 6.34% to 6.51%.

The increase is well-aligned with market norms, as sellers recalibrate pricing to facilitate financing access and keep pace with Federal Reserve rate hikes," they wrote. On-market listings have increased 13% from 477 to 538.

So far, the report is in keeping with broader observations and analyses of net lease. Across the spectrum, cap rates have been climbing over the last six consecutive quarters, The Boulder Group reported. And triple net lease inventories have been on the rise since at least May 2022, according to the calculations of Chris Lomuto at Northmarq.