NNN Five Below for Sale

Investors looking for predictable income and low-management real estate are increasingly turning to Five Below triple net (NNN) properties. These assets combine the passive nature of NNN leases with the strength of one of America’s fastest-growing discount retailers. Five Below reported a revenue increase of 10.71% in 2025, reaching $4.035 billion, underscoring its resilience in both stable and uncertain markets. For 1031 exchange buyers and passive investors alike, Five Below’s aggressive expansion and long-term lease structure make it a compelling replacement property option.

Benefits and Risks of Five Below NNN Properties

Key Benefits: – Stable, long-term income with limited landlord obligations – Tax advantages through 1031 exchanges – Creditworthy tenant with consistent expansion – Built-in rent escalations to hedge inflation

Risks to Consider: – Tenant credit exposure—if Five Below faced financial challenges, landlords could be impacted – Lease rollover risk at expiration if renewal isn’t exercised – Location-specific risks, such as shifting demographics or competing retailers

Learn more with our 1031 Exchange Guides section on our website.

Market Trends and Comparisons

The net lease market remains strong, with cap rates for national retailers averaging between 5.5% and 6.5% according to CBRE. Discount retailers like Five Below are particularly appealing, as the value retail sector is projected to reach $89.01 billion by 2033. By comparison, tenants like Dollar General and Dollar Tree have similar models, but Five Below’s focus on younger demographics positions it for long-term demand.

According to CBRE, executives across the commercial real estate sector expect revenue increases in 2025—a positive sign for investors seeking stability in NNN assets.

Five Below: A Premier Tenant for NNN Investments

Business Model & Market Positioning

Five Below caters to younger consumers with trendy, affordable products, creating consistent customer demand. Its focus on value and experience has made it a household name among discount retailers.

Growth & Expansion Strategy
In Q1 2025 alone, Five Below opened 55 new stores, bringing its total to 1,826 across 44 states. This rapid expansion demonstrates strong financial backing and ongoing demand for its retail concept.

Location Strategy
Stores are typically located in high-traffic centers alongside national anchors like CVS, Walgreens, and Starbucks. This strategic placement enhances visibility and stability for investors.

Financial Strength
With consistent revenue growth and expansion, Five Below is considered a reliable tenant, often securing long-term absolute NNN leases with multiple renewal options.

Buyer’s Checklist for Five Below NNN Properties

Before purchasing, investors should review:

· Lease length & renewal options (typically 10–15 years)

· Tenant credit strength and financial reports

· Location demographics (traffic counts, household income, growth trends)

· Cap rate vs. market average for the region

· Property condition & maintenance obligations

· CAM reimbursement structure and ground lease considerations

Frequently Asked Questions

Q: Are Five Below NNN properties good for passive income?
A: Yes. Because tenants cover taxes, insurance, and maintenance, investors receive steady, predictable income without day-to-day management.

Q: How do these leases impact profitability?
A: With low landlord expenses and scheduled rent increases, Five Below NNN leases often provide higher net yields compared to other retail investments.

Q: What renewal options are typical?
A: Most Five Below leases include multiple 5-year renewal options, offering extended income security.

Q: What happens if Five Below leaves?
A: Properties are well-positioned for re-leasing to other national retailers such as Dollar General or regional discount brands, thanks to high-traffic locations.

Q: Do these leases qualify for 1031 exchanges?
A: Yes. They are ideal for 1031 replacement properties, allowing investors to defer taxes while securing a long-term tenant.

Conclusion: Final Thoughts

Investing in Five Below triple net properties offers an attractive combination of strong tenant performance, passive income, and tax-efficient growth through 1031 exchanges. With discount retail continuing to expand and Five Below aggressively growing nationwide, these properties are in high demand.

Don’t wait—prime NNN opportunities are often sold within days. Contact Triple Net Companies today to access exclusive Five Below NNN listings before they reach the open market.

Questions about NNN Properties for Sale?

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