| Metric | Details |
|---|---|
| Parent Company | Dollar General Corporation |
| S&P / Moody’s Rating | BBB / Baa3 |
| Sector | Dollar/Discount |
| US Locations | 20,893 |
| Cap Rate Range | 6.75%–7.05% |
| Typical Lease Term | 15 years |
| Guarantee Type | Corporate |
| Stock Ticker | DG (NYSE) |
| Annual Revenue | $40.6B (FY2025 (ended Jan 30, 2026)) |
| Typical Price Range | $1,200,000–$2,500,000 |
Bond vs NNN Comparison: See how Dollar General corporate bond yields compare to Dollar General NNN cap rates, with after tax math, depreciation impact, and 1031 exchange treatment. Dollar General Bonds vs NNN →
Dollar General Business Overview & NNN Investment Grade Profile
Dollar General is the largest dollar store chain in the United States, with over 20,000 locations across rural and secondary markets. DG provides affordable retail merchandise ranging from consumables and seasonal items to home goods and gifts. As the most NNN-listed tenant in America, Dollar General represents a core holding for many real estate investors.
The company’s credit quality and operational stability make it a preferred tenant for institutional and individual investors seeking consistent cash flows from triple net leases. The lease structure typically provides escalations and long renewal periods, supporting predictable income streams.
Investors evaluating Dollar General NNN properties should focus on location quality, lease terms, cap rate entry, and the tenant’s credit trajectory. This analysis examines Dollar General’s credit profile, lease structure, market positioning, and investment considerations for Q1 2026.
Dollar General Credit Rating Analysis
The company’s ability to service debt and lease obligations has been consistently demonstrated through economic cycles. Management’s strategic focus on operational efficiency and market positioning supports the strength of its guarantee.
Investors should monitor Dollar General’s quarterly earnings releases, cash flow generation, and any changes in credit outlook. Investment-grade credit ratings typically indicate lower probability of lease default, though individual property location and lease terms remain critical evaluation factors.
Dollar General NNN Lease Structure
Dollar General NNN leases typically feature a 15-year initial term with multiple renewal options. The tenant is responsible for all operating expenses including property taxes, insurance, and common area maintenance—the defining characteristic of triple net leases.
Escalations provide rent growth throughout the lease term. Renewal options typically extend additional years, providing landlords with long-term occupancy certainty and predictable income.
The corporate guarantee from Dollar General Corporation is a material factor in the lease’s creditworthiness. This guarantee backs all rent obligations and provides recourse if the individual location underperforms.
Dollar General NNN Cap Rate & Pricing Trends
As of Q1 2026, Dollar General NNN properties are trading at cap rates ranging from 6.75% to 7.05%, reflecting the tenant’s credit quality. This range accounts for location variations, building vintage, lease structure, and remaining lease term.
Typical property acquisition prices range from $1,200,000 to $2,500,000, depending on location, building quality, and lease structure. Properties in prime retail locations and those with longer remaining lease terms command lower cap rates and higher values.
For comprehensive market guidance and pricing trends, investors should consult the Dollar General NNN Investment Guide and current broker reports on Dollar/Discount NNN properties.
Dollar General Real Estate Footprint
Dollar General operates 20,893 locations across the United States. The company’s footprint includes standalone and co-tenanted buildings serving essential retail and service categories. Most Dollar General properties are located in secondary and tertiary markets, providing investors with access to resilient real estate.
Dollar General Growth & Expansion Outlook
Dollar General’s expansion strategy focuses on aggressive new unit growth. The company typically opens 450-500 stores annually, with selective market entry and optimization of existing locations.
This measured growth approach supports stable cash flows and reinforces the tenant’s investment-grade profile. Investors benefit from the tenant’s focus on profitable unit economics and long-term sustainability rather than aggressive, debt-fueled expansion.
Dollar General NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Most-listed NNN tenant in the US | Rural concentration and demographic challenges |
| 20,000+ locations across essential retail markets | Margin compression from tariff headwinds |
| Strong market position in rural areas | Competitive environment from other dollar chains |
| Corporate guarantee backs all leases | Moody’s downgrade to Baa3 in March 2025 |
Comparable NNN Tenants
| Comparable Tenant | Rating | Cap Rate Range |
|---|---|---|
| Dollar Tree | Investment Grade | ~5-7% |
| Family Dollar | Investment Grade | ~5-7% |
| Five Below | Investment Grade | ~5-7% |
What is the credit rating of Dollar General?
Dollar General maintains credit ratings of BBB (S&P) and Baa3 (Moody’s). These ratings reflect the company’s financial stability and ability to service debt and lease obligations across economic cycles.
What cap rates are Dollar General NNN properties trading at?
Dollar General NNN properties are trading at cap rates ranging from 6.75% to 7.05% as of Q1 2026. Prime locations and properties with longer lease terms trade at lower cap rates.
Is Dollar General a good NNN investment?
Dollar General is considered a quality NNN investment due to its credit profile, corporate guarantee, and essential market position. Careful property selection and location analysis remain critical.
What is the typical lease term for Dollar General NNN properties?
Dollar General NNN leases typically feature a 15-year initial term with multiple renewal options extending beyond the initial period. Escalations support rent growth throughout the lease term.
The Only Dollar General NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker pays the cooperating commission. That means you get a dedicated Dollar General NNN advisor handling sourcing, underwriting, financing, and closing — and on the majority of transactions, there is no separate fee to you as the buyer.
Here’s what that buys you:
Find It — On-market and off-market Dollar General NNN properties sourced and underwritten on your behalf. We know which markets are pricing correctly, which listings are overpriced for what the lease actually says, and where the spread is worth the move.
Fund It — Acquisition financing through 150+ lender relationships: life companies, CMBS, regional banks, and credit unions that know Dollar General-grade paper. Not the first approval that comes back. The best terms on the table for this specific credit and lease structure.
Exit It — Selling a Dollar General asset or repositioning through a 1031? Our Capital Markets desk runs a quiet, targeted process. Private investors, family offices, and institutional buyers who are actively acquiring Dollar General net lease — not a public blast that signals desperation to the market.
Not committed to Dollar General? Tell us your criteria — cap rate floor, credit tier, lease structure, geography, equity check size — and we’ll find the deal that fits. We represent investors across the full NNN credit spectrum, from QSR and pharmacy to industrial, medical, and big box retail. The tenant is a variable. Your criteria is the constant.
Get Your Free Dollar General NNN Consultation →
In a 1031 exchange with a deadline? Tell us your timeline — we move faster.
Related NNN Tenants
Own a Dollar General Property? Capital Markets Strategies Beyond Selling
Maturing debt and considering refinancing? Our capital markets team maintains 150+ lender relationships underwriting NNN properties across investment-grade and non-investment-grade credit tiers. We structure rate-and-term refinancing, cash-out refis, and bridge-to-perm takeouts.
Evaluating a 1031 exchange or disposition? We represent both sides of Dollar General NNN transactions — whether you are looking to exit at peak value, exchange into a higher-quality credit tenant, or reposition within the same sector.
Need a current valuation? We maintain live comps on Dollar General NNN transactions and can produce a Broker Opinion of Value within 48 hours reflecting today’s cap rate market.
Own multiple Dollar General properties? Considering an off-market sale?
Investment Grade represents owners on confidential disposition of Dollar General portfolios and individual properties through off-market direct-to-principal distribution to specialty REITs, private equity funds, and family offices. Dollar General buyer demand runs deep, and portfolio sales consistently produce stronger pricing than sequential individual sales because the institutional buyer pool is structured around portfolio acquisition.
For multi-property owners considering a portfolio disposition, see Selling Investment Grade NNN Off-Market: Tenant-by-Tenant Buyer Demand. For the full off-market framework covering individual property dispositions, sale-leasebacks, and 1031 coordination, see Off-Market CRE Sales: The Complete 2026 Guide.
The pre-listing conversation is at no cost and fully confidential. Email team@investmentgrade.com or see contact Investment Grade.
