CHICAGO—Cap rates for single tenant net lease properties have been on a long-term slide, but more than any other sector, it's drug stores that really draw interest from investors.
“They are mostly investment grade, they have the longest lease terms and investors are very familiar with the brand names," Randy Blankstein, president of the Boulder Group, a net lease investment brokerage firm located in suburban Chicago, tells GlobeSt.com.
The company just released its latest report on the sector and found that cap rates for CVS, Rite Aid and Walgreens properties reached a new historic low in the third quarter. Furthermore, owners have attempted to take advantage of unprecedented high values, increasing the drug store property supply by more than 20%.
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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.
