Dollar General Deals: The Truth About High Cap Rates

High cap rates are not telling you a deal is better. They are telling you something underneath the deal has changed.That signal matters.When lease term compresses and buyer demand narrows, pricing adjusts before most investors understand why. That’s where mistakes get made.Welcome to Commercial Connections, where I help property owners and investors make smarter commercial real estate decisions with confidence. I’m René Nelson, CCIM, a broker and advisor focused on helping investors buy and evaluate triple net properties with a clear understanding of risk, timing, and execution.In this episode, I break down what a high cap rate is actually signaling in triple net investments, specifically Dollar General and similar single-tenant deals. The issue is not the income. The issue is the duration and who will buy that income from you later. Investors often assume higher yield means better pricing, but in most cases, it reflects shorter lease terms, reduced liquidity, and a more constrained exit.That creates a real ownership decision around how much lease term you’re buying, how long you plan to hold, and whether your exit aligns with how the next buyer will underwrite the deal.What we cover ⦿ Why high cap rates are usually pricing risk, not opportunity ⦿ How lease term directly impacts liquidity and exit pricing ⦿ The common mistake of buying short-term income without an exit plan ⦿ Why buyer pools shrink as lease term compresses ⦿ How to evaluate offering memorandums in under 60 seconds ⦿ The “three timeline” framework for aligning hold period and exitGet a clearer framework for evaluating triple net deals at eugene-commercial.com#triplenet #nnninvesting #commercialrealestate #dollargeneral #netlease #investmentproperty #realestateinvesting #caprate #creadvice #1031exchange