The CoStar Group reported last week that Dollar General Stores intends to add 600 new stores in 2010. The discount chain currently boasts over 8,700 properties and has thrived in the current recessionary environment.
Dollar General reported net income figures for the first 9 months of 2009 were almost 300% higher than for the same period in 2008. Total net income for the 2009 period was posted at $63.7 Million.
A particularly noteworthy metric was Dollar General's same-store sales growth of 10.3% over last year. Same-store sales growth provides an excellent picture of the chain's core performance as it eliminates growth measurements attributed to new store development, thus providing a better snapshot of what type of growth is occurring in existing markets.
To view the CoStar article in its entirety, follow this link: http://www.costar.com/News/Article.aspx?id=91BB9984AD97B16AE0F5CDCEF7A53996
For investors, Dollar General Stores provide a stable tenant with relatively long-term leases at excellent price points (under $1 Million--often under $750,000) at outstanding costs per square foot (usually under $100). In 2010 Dollar General began to introduce 15 year primary lease terms and is rumored to be moving from NN leases toward absolute NNN leases.
Sperry Van Ness/Fiducia Properties has assisted several investors with the acquisition and disposition of Dollar General investment properties. We also attempt to keep abreast of other brokers' inventories so that we can identify the best opportunities for our clients and customers.
Please contact Greg Finley at 888.879.2083 or greg.finley@svn.com for a more thorough discussion of available Dollar General and other commercial real estate investment opportunities.
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