Drug Store & Pharmacy NNN
Single-tenant pharmacy properties anchored by national chains — essential healthcare access points with long-term lease structures.
Data as of Q3 2026 · Sources: CoStar, CBRE Research, Moody's Analytics
Key Metrics
Market Overview
Drug store and pharmacy NNN properties are a cornerstone of net lease investing, with Walgreens and CVS operating nearly 19,000 combined U.
S. locations. These properties typically feature 13,000–15,000 SF freestanding buildings on 1.5–2.0 acre corner pads with drive-through lanes — prime real estate for healthcare access. Pharmacy tenants sign 20–25 year absolute NNN leases, and the property type has historically been the benchmark for NNN investing. However, the sector is undergoing a transformation: Walgreens' credit downgrade to BBB- and store closure announcements have created a bifurcated market where lease term and location matter more than ever. Long-dated leases in strong demographic areas continue to trade at 5.50–6.00%, while shorter-term or secondary-market Walgreens can see 7.00–8.00% cap rates.
Top Tenants by Portfolio Size
Recent Market Deals
Market Outlook
The pharmacy NNN sector is at an inflection point. Walgreens and CVS are both rationalizing store footprints, closing underperforming locations while investing in healthcare services (in-store clinics, primary care, diagnostics). For investors, this creates both risk and opportunity: the closure list creates repricing events on secondary-market properties, while flagship locations with new clinic buildouts are strengthening their healthcare hub role. CVS's investment-grade credit (BBB) commands tighter pricing than Walgreens (BBB-). The key investor question is remaining lease term — properties with 15+ years are insulated from closure risk; sub-10-year properties in secondary markets require deep due diligence on the specific store's sales volume and demographic profile.
Key Investor Tips
Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Statistics may be estimated from publicly available sources and should be verified with primary data providers before use in investment decisions. Tenant information is sourced from public filings and may not reflect current conditions. Past performance does not guarantee future results.