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Updated 5 days ago on . Most recent reply

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Renegotiating a Dollar General lease contract

Kenneth Crawford
Posted

I recently inherited a Dollar General store from my parents. They owned the store for 20 years. Now the lease is up for renewal and Dollar General wants me to sign a contract for 6 years with no increase in rent. The property management team is encouraging me to do this, but no rent increase for 6 years sounds questionable to me. Does anyone have experience renegotiating lease agreements with Dollar General?

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Kenneth Crawford:

I recently inherited a Dollar General store from my parents. They owned the store for 20 years. Now the lease is up for renewal and Dollar General wants me to sign a contract for 6 years with no increase in rent. The property management team is encouraging me to do this, but no rent increase for 6 years sounds questionable to me. Does anyone have experience renegotiating lease agreements with Dollar General?


Of course they don't want an increase! There's value to having a long-term tenant and no vacancies, but no increase means you could be 15-20% below market at the end of six years. Meanwhile, your expenses will continue to grow. If they are a NNN lease (they pay taxes, insurance, utilities, maintenance) then I would consider it. If you incur any expenses, then I would build in a small increase to cover the increase of those expenses over that time period.

  • Nathan Gesner
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