Renegotiating a Dollar General lease contract

[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?

[Nathan Gesner]

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.