CHICAGO—Cap rates for net lease properties have been falling forquite 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, in thethird quarter of this year cap rates for many top drug store brandsfell again.

“Walgreens cap rates remained stable at theirpreviously reached historic low level in the first quarter of2014,” according to the new report. But cap rates forCVS and Rite Aid properties sank15 bps and 35 bps, respectively, since hitting their own historiclows in the first quarter. The Walgreens rate nowstands at 5.6%, with CVS at 5.75% and Rite Aid at 7.4%.1031 exchange buyers and private investors remainthe primary buyers.

“Investors are attracted to these properties partly because theyare one of the few opportunities with tenants that sign leases of20 years or more,” Randy Blankstein, president ofBoulder, told GlobeSt.com. In fact, although the overall rate forWalgreens properties remained stable, rates for Walgreensproperties with more than 20 years of lease remaining compressed by20 bps to 5.3%.