CHICAGO—Reversing a long-term trend, cap rates for single tenantCVS, RiteAid andWalgreens properties all increased significantly in thethird quarter of 2016, according to a new report by theBoulderGroup, a net lease firm insuburban Chicago. Investors seem most concerned by US antitrustregulators' requirement that Walgreens sell between 500 and 1,000stores before they will approve its plan to acquire Rite Aid.
Cap rates for the net lease drugstore sector increased by 33 bps to a 5.96% cap rate when comparedto last year, Boulder found. Rite Aid and Walgreens cap rates wentup 30 and 37 bps each. In the same timeframe, CVS cap ratesincreased by 25 bps.
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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.
