Who has experience with renewing NNN lease with Dollar General?
Store is pretty successful and lease is up in 2023.  Trying to better understand how much increase / or any I can expect In monthly rent.  The current contract does have 3 , 5 year options.  Each option increases substantially.
[{"id": "gvch8et", "text": "If you already have the option in place is there a reason you are trying to renegotiate? Is the new rate way below market? You might be a but early to have them execute the option but it's worth trying. If they do it early they will probably try to negotiate a reduce rent not an increase.", "replies": [], "depth": 1}, {"id": "gvcmuex", "text": "I have some experience with Dollar General. I would expect them to exercise those options exactly as they are laid out in the lease. In my experience, they do not like to renegotiate.", "replies": [{"id": "gvg3k42", "text": "This. If there\u2019s options in play here and they\u2019re on par with market they are gonna just extend those until they\u2019re up.. so your income relations to that property should be pretty clear cut. In the rare event the lease outpaced the market they would likely come to the table and look for a new FMV deal.", "replies": [{"id": "gvgdfpm", "text": "Its surprising how many landlords and tenants are not aware of how lease options function. Dollar General generally pays below market rates for their spaces, but their creditworthiness usually suppress CAP rates which keeps the property value high.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gvdi2dq", "text": "*\"Trying to better understand how much increase / or any I can expect In monthly rent.  The current contract does have 3, 5 year options.  Each option increases substantially.\"*\n\nYou can expect the increases spelled out in your lease.", "replies": [], "depth": 1}, {"id": "gvdrms2", "text": "They are going to exercise the way it is in the contract unless they feel the economy justifies renegotiating", "replies": [{"id": "hx1ohsp", "text": "Im working through one as we speak.. DG hired a company to renegotiate with me to reduce the rent.  rent is scheduled to go up at renewal, they are asking to keep the same.. what happens if i dont agree?", "replies": [{"id": "i2iipk3", "text": "What happen with ur DG?  Did it increase or reduce.  My least is not up for several years and trying to understand If moving to the options r my best bet.  Like to get another long term least.", "replies": [], "depth": 3}, {"id": "j0vrq2v", "text": "Any updates that you can share on this post? what happened with your lease in the last ten months?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gve3op7", "text": "As others have mentioned....IF they exercise their options, the rate is more than likely already mentioned in the Lease. Also, my understanding is....they have no problem moving across the street from a location for cheaper rent. And if that happens, filling your vacancy may be difficult because of their foot print. There is a reason these sell for 7-9% CAP rates.", "replies": [], "depth": 1}, {"id": "ir7ostm", "text": "How often does DG choose NOT to exercise its lease options and vacate the premises?", "replies": [], "depth": 1}]