Dollar Tree NNN Retail
New
For Sale
$1,193,000
1246 Lamar Ave, Memphis, TN 38104
Single-tenant retail building at a signalized intersection with parking and Lamar Avenue access.
Property Size8,320 SF
Lot Size0.86 Acres
Price / SF$143.39
Days on Market2
Property Features for 1246 Lamar Ave
General Information
Standard status
Active
Size
8,320 SF
Lot size
0.86 Acres
Property subtype
Discount
Lease Type
NN
Additional Details
Cap Rate
8.01%
Amenities
High-Performing Location (Placer.ai) – The store ranks in the top 85% of Dollar Tree locations in Tennessee
Strategic Memphis Location – Located within a dense infill market in Memphis, a major regional hub with strong population fundamentals and consistent demand for discount retail
Corporate Guarantee (NASDAQ: DLTR) – Dollar Tree is a publicly traded company, with the lease being corporately guaranteed
Building Details
Building Size
8,320 SF
Buildings
1
Tenancy
Single
Listing Agency:
Marcus & Millichap
(314) 889-2565
Listed By:
Jake Nowak · License #License(s): MO: 2025007018, IL: 475.216742
(314) 889-2565
Source:
Marcusmillichap
Added: Aug 16
Changed: Aug 17
Last Checked: Aug 17 at 4:28AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap
Investment Insights
Based on property information with market context.
The property is a single-tenant retail building occupied by Dollar Tree, with approximately 8,320 square feet on a ±0.86-acre parcel. The site includes ample parking and is arranged for retail use at a signalized intersection. Its NN+ lease structure limits landlord responsibilities while providing an established contractual income stream.
Located at 1246 Lamar Avenue in Memphis, the property fronts a primary commercial corridor with visibility, accessibility, and consistent daily traffic. Memphis serves as a major Southeast logistics and distribution hub, with global employers and a dense population base. The surrounding market includes a large consumer base supporting necessity-oriented retail demand.
Located at 1246 Lamar Avenue in Memphis, the property fronts a primary commercial corridor with visibility, accessibility, and consistent daily traffic. Memphis serves as a major Southeast logistics and distribution hub, with global employers and a dense population base. The surrounding market includes a large consumer base supporting necessity-oriented retail demand.
Key Highlights
- Dollar Tree occupies an approximately 8,320‑square‑foot single‑tenant retail building
- ±0.86‑acre parcel with ample parking
- NN+ lease structure limits landlord responsibilities
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$82,992
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.96%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,659,840
$1.7M
Cap Rate 7%
$1,185,600
$1.2M
Cap Rate 9%
$922,133
$922.1K
Market Conditions
NOI Build-Up for 8,320 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$124.8K $15.00/SF
− Vacancy
−$6.2K −$0.75/SF
EGI
$118.6K $14.25/SF
− OpEx
−$35.6K −$4.27/SF
NOI
$83.0K $9.98/SF
Area
Memphis, TN
Vacancy
5.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,659,840
Cap Rate 7%
$1,185,600
Cap Rate 9%
$922,133
Alternative Uses
Best Use
Retail
$1.19M
$1.04M – $1.38M
NOI $82,992 @ 7.0% cap · market cap 6.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.46M
$2.15M – $2.87M
NOI $172,124 @ 7.0% cap · market cap 14.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
5k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 75%
Home Improvements & Furnishings 25%
Valero Energy
Shops & Services
3,790 visits/mo
0.3 miles
Graybar
Home Improvements & Furnishings
1,234 visits/mo
0.4 miles
Demographics for 38104, TN
22,584
Population
14,315
Households
1.6
Avg Household Size
38
Median Age
52%
College-Educated
93%
High-School Grad
5.0 sq mi
ZIP Area
4,517
Density / Sq Mi
$56,452
Median Household Income
$48,300
Median Earnings
$1,073
Median Rent
$301,100
Median Home Value
Market
Vacancy Rate% for Retail in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant retail building at a signalized intersection with parking and Lamar Avenue access.
Where is this nnn property located?
The property is located at 1246 Lamar Ave Memphis, TN.
What is the asking price?
The asking price for this property is $1,193,000.
What are key features of this property?
This property features: Dollar Tree occupies an approximately 8,320‑square‑foot single‑tenant retail building; ±0.86‑acre parcel with ample parking; NN+ lease structure limits landlord responsibilities
