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Analysis

Single Tenant Drug Store Sector Cap Rates Increase

Cap rates for Rite Aid and Walgreens properties experienced cap rate increases of 19 and 15 basis points respectively.

By Les Shaver | November 02, 2020 at 06:30 AM

National asking cap rates in the single-tenant drug store sector increased to 6.4% in the third quarter, according to The Boulder Group’s Net Lease Drug Store Report. This represented a 17 basis point increase when compared to the prior year.

“The drug store sector, hasn’t been developed a lot in the last few years,” states Randy Blankstein, president of the Boulder Group. “They’ve been renegotiating leases. A lot of the stuff that has traded was older because people see the cap rates come down and want to take advantage of it.

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