CHICAGO—Cap rates for single tenant net lease properties havebeen trending down for quite some time, often hitting historic lows, but investors find few sectorsas appealing as drug stores. And according to the most recentreport from the Boulder Group, a commercial realestate services firm located in suburban Northbrook, IL, cap ratesfor top drug store brands have fallen since the third quarter oflast year.
“Walgreens, CVS andRite Aid single tenant properties experienced caprate compression of 15, 17 and 25 bps respectively,” according tothe new report. “Part of the compression can be attributed to thesignificant decline of 9% in the supply of drug store propertiescurrently being marketed.”
The Walgreens rate now stands at 5.6%, with CVS at 5.9% and RiteAid at 7.75%.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
