Building Details

Building Size 9,100 SF

Year Built 2021

Buildings 1

Tenancy Single

Listed By: Ryan Croke · License #License(s): CA: 02198781 Show Phone

Source: Marcusmillichap

Added: Sep 30 Last Checked: Oct 4 at 6:19AM

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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 Ryan Croke

Investment Insights

Based on property information with market context.

Built in 2021, this freestanding Dollar General store contains 9,100 square feet on 3.85 acres. The property is leased on a NNN basis, with a corporate guaranty from Dollar General Corporation. The lease began in May 2021 and runs through May 2036, with three five-year renewal options. Rent increases of 10% are scheduled at each option period.

The store is located on Big Springs Road in Weed, California, along a corridor connecting rural residential communities with Weed’s commercial district and Interstate 5. College of the Siskiyous is also nearby. Siskiyou County has a population of 42,766 and a daytime population of 33,373.

Key Highlights

• Dollar General Corporation provides the corporate lease guaranty
• NNN lease with three five‑year renewal options
• 9,100‑square‑foot freestanding store on 3.85 acres

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

$111,867

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

5.46%

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%

$2,237,340 $2.2M

Cap Rate 7%

$1,598,100 $1.6M

Cap Rate 9%

$1,242,967 $1.2M

Market Conditions

NOI Build-Up for 9,100 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

$158.3K $17.40/SF

− Vacancy

−$9.2K −$1.01/SF

EGI

$149.2K $16.39/SF

− OpEx

−$37.3K −$4.10/SF

NOI

$111.9K $12.29/SF

Area

Siskiyou County, CA

Vacancy

5.80%

Lease Rate

$17.40 /SF/Yr

Expense Ratio

25.00%

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%

$2,237,340

Cap Rate 7%

$1,598,100

Cap Rate 9%

$1,242,967

Alternative Uses

Best Use

Specialty Retail

$1.60M

$1.40M – $1.86M (±1% cap)

NOI $111,867 @ 7.0% cap · market cap 5.46%

Second Best

Retail

$1.23M

$1.07M – $1.43M (±1% cap)

NOI $85,766 @ 7.0% cap · market cap 4.18%

Theoretical Best

Office A

$2.68M

$2.34M – $3.12M (±1% cap)

NOI $187,387 @ 7.0% cap · market cap 9.14%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Dollar General Discount Store Western Union Bank

Suggested Use

Top Pick Storage Facility Computer & Electronic Repair Accounting Firm Gym & Fitness Center Spa & Massage Center Real Estate Agency

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Single-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

35

Businesses Nearby

6k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

5,840 visits/mo 0.2 miles

Demographics for 96094, CA

6,908

Population

3,233

Households

2.1

Avg Household Size

47

Median Age

24%

College-Educated

91%

High-School Grad

200.4 sq mi

ZIP Area

34

Density / Sq Mi

$65,139

Median Household Income

$32,836

Median Earnings

$951

Median Rent

$298,600

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - The newer store is backed by a corporate guaranty and sits on a 3.85-acre parcel.

Where is this grocery and convenience store located?

The property is located at 20639 Big Springs Rd Weed, CA.

What is the asking price?

The asking price for this property is $2,050,000.

What are key features of this property?

This property features: Dollar General Corporation provides the corporate lease guaranty; NNN lease with three five‑year renewal options; 9,100‑square‑foot freestanding store on 3.85 acres