The net lease listings InvestmentGrade.com tracks include 533 active Dollar General listings with a published asking cap rate, as of October 12, 2026. Their median asking cap rate is 7.00%, against an index yield of 6.19% for Dollar General’s rating category, a spread of +81 bps. A larger sample does not make the median a closed-sale figure or show that it represents the whole market; it is the middle of what sellers are asking.
Bonds are issued by Dollar General Corporation; a store lease may be signed by an operating subsidiary rather than the parent, so confirm whether the parent guarantees a given lease. See the Dollar General credit rating and NNN cap rate page.
Dollar General Credit Profile
| Metric | Details |
|---|---|
| S&P senior unsecured rating | BBB (Stable) |
| Moody’s senior unsecured rating | Baa3 (Stable) |
| Status | Investment Grade |
| Rated entity, outlooks and source | Dollar General Corporation. Its Form 10-Q for the quarter ended July 31, 2026 lists these as senior unsecured debt ratings, each with a Stable outlook. |
| Rating sources | S&P Global Ratings BBB, Stable, as of August 27, 2026; Moody’s Baa3, Stable, as of August 27, 2026. Ratings checked October 8, 2026. |
The Spread: Dollar General Bonds vs. NNN
The comparison uses the bond index yield for Dollar General’s rating category against the median asking cap rate on active Dollar General listings.
| Metric | Dollar General bonds (rating-category index) | Dollar General net lease properties |
|---|---|---|
| Yield measure today | 6.19% (ICE BofA BBB index) | Median asking cap rate 7.00% (533 listings with a cap rate) |
| Spread, cap rate minus index yield | Baseline | +81 bps |
| Obligor | The issuing entity named in the bond’s indenture | The entity that signs or guarantees the lease |
| Investment size | $2,000 face, then $1,000 increments, per Dollar General’s note prospectus; small trades cost more | $1.40M median asking price |
| Liquidity | Trades over the counter through dealers | Weeks to months to sell |
| Income taxation | Interest taxed as ordinary income | Rent taxed as ordinary income, partly offset by depreciation of the building (land is not depreciable) |
| 1031 exchange | Not eligible | Eligible if held for business or investment use |
| Value at the end | Face value at maturity absent default; market price moves before then | Depends on the property, lease term, and market |
| Income growth | Fixed coupon | Only if the lease provides rent increases |
Bond yield: ICE BofA effective yield index for Dollar General’s rating category via FRED, as of October 1, 2026; it is an index average, not a quote on Dollar General’s own bonds. Cap rate: median asking cap rate on active listings InvestmentGrade.com tracks, as of October 12, 2026; asking cap rates are not closed-sale cap rates. Tax rows are general information, not advice: interest and rent are taxable income (IRC Section 61(a)(4) and (5)), land is not depreciable (Treas. Reg. 1.167(a)-2), and only real property held for business or investment qualifies for a 1031 exchange (IRC Section 1031(a)(1)). n/a means too few listings to report a median.
Why the Spread Exists
The net lease market prices each store, while the bond market prices the company. Dollar General operates small-box stores, and its Form 10-K for the fiscal year ended January 30, 2026 says approximately 80% of its stores are located in towns of 20,000 or fewer people; a buyer should weigh how easily a small store in a small town could be re-leased or resold if the tenant left. Most Dollar General stores are leased, and its 10-K says many stores, including a significant portion of new stores, carry a primary lease term of up to 15 years with multiple renewal options.
After-Tax Illustration
The table is a normalized full-year illustration, not a first-year tax projection. It compares a hypothetical bond position assumed to pay an annual cash coupon equal to the index effective yield (an index yield is not the coupon on any actual bond) with an all-cash net lease purchase of the same size at the median asking cap rate. Part of the difference in after-tax cash comes from depreciation. On a taxable sale, gain attributable to straight-line depreciation on the building may be taxed at up to 25%, plus the 3.8% net investment income tax where it applies; gain on components depreciated as section 1245 property, such as some cost-segregated items, is generally taxed as ordinary income up to the depreciation taken. If a sale produces no gain, neither applies. The table does not show which investment does better over a full holding period, which also depends on any change in the property’s value, sale costs and taxes, and what the bond returns at maturity or sale.
| One full year, $2,000,000 invested, all cash | Bond at 6.19% (BBB index) | NNN at 7.00% cap rate |
|---|---|---|
| Pre-tax income | $123,800 | $140,000 |
| Depreciation (building only, 80% of price over 39 years) | $0 | $41,026 |
| Taxable income | $123,800 | $98,974 |
| Federal tax at 40.8% | $50,510 | $40,382 |
| After-tax cash | $73,290 (3.66%) | $99,618 (4.98%) |
Illustration only. Assumes no financing, a 20% land allocation (land is not depreciable), straight-line depreciation with no cost segregation, a combined 40.8% federal rate (37% plus the 3.8% net investment income tax) on both incomes, and no state tax. It ignores closing and management costs, rent changes, and the sale. On a taxable sale, the part of the gain up to the depreciation taken is generally taxed at up to 25% (IRC 1(h)(1)(E), 1(h)(6)), plus the 3.8% net investment income tax where it applies (IRC 1411). A 1031 exchange into like-kind real property can defer that tax (IRC 1031(a)), but gain is taxable up to the cash and the value of any other non-like-kind property received (IRC 1031(b)). With cost segregation or other accelerated depreciation, part of the gain can be taxed as ordinary income even in an exchange (IRC 1245(b)(4), 1250(d)(4)). A bond bought at par returns par at maturity. Bond yield is the ICE BofA index yield for the tenant’s rating category via FRED; cap rate is the median asking cap rate on active listings InvestmentGrade.com tracks. Consult a tax advisor for your situation.
Frequently Asked Questions
What is the spread between Dollar General bonds and NNN cap rates?
The median asking cap rate on active Dollar General listings we track is 7.00% against an index yield of 6.19% for its rating category, a spread of +81 bps. An asking cap rate and an index effective yield are different measures.
How is Dollar General rated?
Our ratings database shows Dollar General Corporation at BBB (Stable) from S&P and Baa3 (Stable) from Moody’s. Dollar General’s Form 10-Q for the quarter ended July 31, 2026 describes its S&P and Moody’s ratings as senior unsecured debt ratings, each with a Stable outlook. A store lease may be signed by a subsidiary, so confirm the tenant and any guarantee.
What are the main risks of a Dollar General property?
Re-leasing a small rural store if the tenant leaves, modest rent increases, and the obligor on the specific lease. Underwrite the location and remaining term, not just the rating.
Considering Dollar General Net Lease Property?
We source Dollar General properties nationally and underwrite the lease, the obligor, and the real estate. On the majority of transactions, there is no separate fee to you as the buyer.
Find it: Dollar General properties across lease terms and markets.
Fund it: financing matched to the tenant’s credit and the remaining lease term.
Exit it: buyers for Dollar General properties, including 1031 exchange buyers.
Exchange it: 1031 execution against the deadlines.
Related Reading
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
