Discount and auto parts retail.

A liquid asset class with meaningful differences.

Discount retail is among the most liquid segments of the net lease market, yet individual stores can differ significantly in value.

Dollar General, Family Dollar, and Dollar Tree operate tens of thousands of stores between them, and their buildings are some of the most frequently traded assets in the net lease market. Their appeal is well established: investment-grade or near-investment-grade parent companies, standardized buildings, and lease structures many buyers already understand. That familiarity creates a deep buyer pool, which is why relatively small details influence price.

Remaining term and rent increases matter enormously. So does the difference between a corporate lease and a franchise-style arrangement, the number of five-year options, whether the roof and parking lot are the landlord’s responsibility, and how the store sits within its trade area. A rural Dollar General serving a large surrounding area can be a stronger long-term asset than a suburban one with heavy competition nearby. The firm’s advisors underwrite these distinctions on every assignment.

Auto parts tenants such as Advance Auto Parts, AutoZone, and O’Reilly share many of the same characteristics, with the added factor of long operating histories at many locations.