Overview

Spanning forty five different states, the Family Dollar, Inc., retail dollar store has been able to ride the waves of retail success throughout multiple markets. Covering over 13k retail properties across the United States, they are now considered to be one of the biggest discount retailers in the ‘small box’ market sector. Ranging from urban to suburban and rural locations, they have also been a great investment opportunity for net leasing. As sellers of high value items at lower price points, this has created a level of company stability, and ensures a continuous stream of revenue for investors. Standard net leasing terms are often fifteen year with multiple five year options. Such leases may include rental bumps of ten percent every 5 years at times of option renewal. While tenants are usually accountable for tax, insurance, and various liabilities for upkeep and repair, landlords typically foot the bills for major costs like roofing and building structure. Recently, Family Dollar has offered sale-leasebacks with 15-year NNN leases along with build-to-suit programs that are also 15-year absolute NNN lease with 10% rent increase in year 10, or every 5 years.

TENANT DESCRIPTION

Founded as a ‘customer first’ company in 1959, Leon Levine believed in superior customer service and ensuring customer satisfaction. He opened the very first Family Dollar in Charlotte, NC, and never looked back. With most Family Dollar locations having a standard dimension of seven thousand sq. ft., many Family Dollar’s will be found with leasing agreements. Since they are smaller store sizes, many have allowed for expansion into different city and rural markets.

Their architectural design and layout creates quite the shopping experience. One that familiarizes customers to find their favorite items, regardless of which store they visit. In this way, employees and managerial staff alike free up their time. Employees can focus on store operations, and when the need arises, they can provide superior customer service.

Taking the overall idea of self service, and combining the cash n’ carry model for customers in low-mid income communities, Family Dollar became wildly popular. Not to mention because of retailing items of value for typically under two dollars per piece. In fact, they performed so well in 2015 that Family Dollar Inc., and its eight thousand retail properties spanning from MA to CA were acquired by Dollar Tree.