There’s a lot of buzz about the recent Walgreens purchase of Rite Aid. GlobeStreet.com put out a recent article on historic low cap rates and how the Walgreens deal may impact the drug store sector in the future.
Cushman & Wakefield/NorthMarq’s Leah Maurer shares her thoughts, “Current Rite Aid property owners are the big winners with the Walgreens purchase, assuming their Rite Aid stores stay open. With nearly a 100 bps swing in median asking rates prior, that spread will narrow significantly with Walgreens credit behind the leases.
The net lease world mirrors many other asset classes where the true core or absolute NNN assets in this case continue to see downward pressure on cap rates, however, if there is any “hair” on the deal, the size of the buyer pool is smaller and pricing is less aggressive.”
Leah Maurer is a Director in the Retail Capital Markets Group.
Leave a comment below on how you think things will shake out in the drug store sector.