NNN CVS Pharmacy

Aging comes with its share of challenges, and the U.S. over-65 population is rising steadily. CVS continues to deliver new net lease properties to the market. CVS has annual retail sales per square foot totaling more than $840, compared to the sector average of $680 for its publicly traded peers. CVS also now boasts a higher credit rating than Walgreens (historically CVS had a lower credit rating than Walgreens) and is considered investment grade with a stable outlook, which improves the value and marketability of corporate guaranteed net lease properties.

Traditionally, CVS leases featured a flat rental structure, however, recently prime locations have been able to demand rental bumps during options – making these properties highly sought after by the net lease investor. The attraction to the investor is likely due to the stability and profitability of the Pharmacy segment as well as the investment grade credit of CVS. The real estate also plays an important driver in these assets, as they are almost exclusively hard corner locations with premiere visibility, and generous access on 1.00 – 2.00 acres of land.

Over the past decade, CVS has signed a variety of lease types. Originally, CVS stores operated under NN leases, holding the landlord responsible for the roof and structure of the building, and in some cases parking and landscaping. These NN leases might provide rental increases as often as every 5 years. However, new leases typically contain flat rents over the primary term (though prime locations can demand rental bumps) and can vary from absolute NNN ground leases to NN fee simple transactions.

Tenant City State Years
Remaining
Price Status
NNN CVS Pharmacy Goshen IN 20+ $5,000,000 Available
NNN CVS Pharmacy Midlothian VA 22 $5,400,000 Available
NNN CVS Pharmacy Elgin TX 22 $5,480,000 Available
NNN CVS Pharmacy El Paso TX 22.5 $8,182,000 Available
NNN CVS Pharmacy Mission Hills CA 9.5 $9,168,000 Available
NNN CVS Pharmacy Cypress TX 14.5 $4,915,329 Available
NNN CVS Pharmacy Miami FL 25 $18,750,000 Available
NNN CVS Pharmacy Dickson City PA 14.5 $5,191,072 Available
NNN CVS Pharmacy San Diego CA 20 $10,000,000 Available
NNN CVS Pharmacy Cypress TX 14.5 $4,915,329 Available
NNN CVS Pharmacy Philadelphia PA 20 $7,789,472 Available
NNN CVS Pharmacy Kissimmee FL 25 $8,471,000 Available
NNN CVS Philadelphia PA 20 $7,789,472 Available
NNN CVS Pharmacy Windermere FL 17 $7,965,000 Available
NNN CVS Pharmacy Dickson City PA 14.5 $5,191,072 Available
NNN CVS Pharmacy Philadelphia PA 20 $7,789,472 Available
NNN CVS Sugar Land TX 25 $4,111,000 Available
NNN CVS Pharmacy Waretown NJ 13.5 $5,323,000 Available
NNN CVS Pharmacy Hollywood FL 25 $6,105,000 Available