Drug Store & Pharmacy NNN

S. store count. 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 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 tight, while shorter-term or secondary-market Walgreens can see wider cap rates.

1. 1Lease term is everything in pharmacy NNN. Properties with a long remaining term trade tighter than short-term Walgreens and carry less re-leasing risk.
2. 2CVS has commanded a premium over Walgreens, with a more stable store count and tighter pricing on comparable locations.
3. 3Corner pads with drive-through lanes are the most valuable pharmacy sites — if the pharmacy leaves, the real estate is highly re-leasable to QSR, banks, or medical tenants.
4. 4Avoid Rite Aid properties entirely unless deeply discounted — the chain's ongoing restructuring and store closures create unacceptable re-leasing risk.
5. 5Look for Walgreens and CVS locations with in-store clinic buildouts (VillageMD, MinuteClinic) — these locations are strategic healthcare hubs unlikely to close.
6. 6Short-term Walgreens leases in strong suburban locations can be contrarian holds if the store's sales support continued occupancy.