National asking cap rates for single-tenant drug stores compressed to 5.8% in the third quarter, driven by increasing investor demand, according to The Boulder Group's most recent net lease report on the sector.

That's a 59 basis point decrease over Q3 2020 numbers, the firm says. 

"New historic low cap rates levels for CVS and Walgreens of 5.15% and 5.40% respectively were the primary driver of the compression," says Randy Blankstein, President, The Boulder Group. "Investor demand for essential retailers carried over from 2020 into 2021, propelling cap rates for all three major tenants in the single tenant drug store sector lower."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.