Retail cap rates have fallen across multiple sectors during the first quarter. Most notably, banks were down 15 basis points, and auto parts stores dropped nine bps. Convenience stores, on the other hand, saw cap rates increase seven bps quarter-over-quarter, according to B+E’s Q1 net lease cap rate report.
Supply has decreased across several asset classes over the quarter, with the casual dining and banking sectors experiencing a fall of 12% while car washes slipped 31%, the report said. Newly available listings make up about a third of the properties currently on the market. Key players in the industrial sector include FedEx and Amazon, which have 21 total properties on the market. FedEx has an average cap rate of 6.62% with a remaining term of 6.9 years, while Amazon's is 5.95% with 8.4 years left.
Among the notable net lease tenant activity during the first quarter, Walgreens announced it is going private after securing a deal with private equity firm Sycamore Partners. The $10 billion equity deal brings its nearly 100-year run as a public company to an end. Walgreens has announced plans to close more than 500 stores this year after reporting an $8.6 billion loss for 2024.
Recommended For You
Also, rival CVS Health has plans to close hundreds of stores this year, although it plans to open a dozen smaller-format locations focused more on medications and less on retail. These locations will be about half the size of a typical CVS store, hinting at the company’s growing interest in shifting to a leaner, more efficient model.
To fend off a $47 billion takeover attempt by the parent company of Circle K, 7-Eleven is splitting into two separate companies. Its North American convenience store operations will separate from the Japanese parent and will be listed as a new entity on the U.S. stock exchange by next year, said B+E.
Dollar Tree is selling its Family Dollar subsidiary to private equity firm Brigade Capital Management. The $1 billion price tag is a fraction of what it paid in 2015. The company plans to open 300 new stores and convert 2,000 locations to Dollar Tree 3.0 formats this year, according to the report.
Whistle Express acquired Take 5 Car Wash, tripling the combined company's national footprint and making it the largest express car wash operator in the country with more than 530 locations. Meanwhile, Zip Car Wash has filed for bankruptcy to shed more than $279 million in debt. The company cited rising interest rates, increased labor costs and growing market competition for the move.
Finally, after acquiring Winn-Dixie, Aldi said it plans to open 225 new stores while selling 170 locations back to the chain’s former owner, according to the report.
© 2025 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.
Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
