Higher yields on hard-corner pharmacy real estate, with a buyer’s broker who closed 9 Walgreens deals, most recently in November 2025.
A Walgreens NNN property is a freestanding pharmacy, typically about 14,000 square feet with a drive-thru on a hard corner, leased to Walgreen Co. on a long-term net lease. Walgreens has changed a lot since 2024: private equity firm Sycamore Partners took the company private in August 2025, its public credit ratings were withdrawn, and its store-closure plan has since been scaled back sharply. As a result, Walgreens properties now trade at noticeably higher cap rates than CVS on very similar real estate. For buyers who underwrite the lease and location carefully, that spread can be an opportunity, including for 1031 exchange buyers who want more yield.
Solid Investments FL has represented buyers on 9 Walgreens transactions across 5 states, including a Rowlett, Texas Walgreens that closed in November 2025, after the Sycamore buyout. See them in our track record. Our buyer representation is always free to you.
| Tenant | Walgreen Co.; confirm the obligor and any guarantor on each lease |
|---|---|
| Ownership | Privately held by Sycamore Partners since August 2025 |
| Headquarters | Deerfield, Illinois |
| Credit rating | Unrated: S&P, Moody’s and Fitch withdrew ratings after the buyout (previously BB- / Ba3) |
| Stores | About 7,500–8,000 in the U.S. |
| Typical lease term | 10–25 years initially; many legacy leases are 25 years |
| Lease type | Mostly absolute NNN; some older stores are NN (landlord covers roof and structure) |
| Rent increases | Often flat during the base term; some newer leases have 5% every 5 years |
| Renewal options | Multiple 5-year options, often up to ten |
| Typical cap rate (2026) | ~6.65%–8.5% (asking median about 7.5%); about 6.5% with 10+ years left, about 8.5% with under 5 |
| Typical price range | About $3M–$10M; most between $3.3M and $5.3M |
| Typical site | About 14,000 SF with drive-thru on 1.4–1.9 acres |
Ownership and ratings as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Since the Sycamore buyout, Walgreens is a private company with limited public financial reporting. Confirm exactly who signs and guarantees the lease, and whether a parent guaranty still stands behind the rent.
S&P, Moody’s and Fitch withdrew their ratings after the take-private; before that, Walgreens had already fallen below investment grade (BB- / Ba3). Price the deal on the lease and the real estate, not on a rating.
Walgreens’ 2024 plan called for about 1,200 closures by 2027. Under Sycamore that plan has been scaled back to fewer than 100 closures in 2026, and the company has begun opening new stores again. Store-level sales still matter most.
Term drives Walgreens pricing more than almost any other tenant: about 6.5% with 10+ years left, about 8% with 5 to 10, and about 8.5% under 5. Our November 2025 Rowlett closing, with 3.7 years left plus ten 5-year options, traded at an 8.0% cap.
Read the lease for go-dark rights, landlord recapture rights and any early-termination options. These clauses determine what happens if a store closes before the lease ends.
Walgreens sites are typically hard corners with a drive-thru on 1.4 to 1.9 acres. Long-tenured stores are a strong signal: our 2024 Tampa sale-leaseback was at a site Walgreens had operated for 30+ years.
When you buy a Walgreens fee simple, you own the building and site improvements, and they are depreciable. The building itself is depreciated over 39 years, and that annual deduction can shelter much of your rental income. A cost segregation study goes further: it separates out parts of the property that can be written off much faster, and under current law that portion qualifies for 100% first-year (bonus) depreciation. With a ground lease you own only the land, which is not depreciable.
A fee-simple Walgreens gives you the building and improvements, often $2.5 million or more of depreciable basis, working for you every year you own it.
Parking lot, paving, drive-thru lane, site lighting, signage, landscaping and certain interior finishes and fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
A cost segregation study is a modest one-time cost. Your CPA can estimate the first-year benefit on a specific store before you commit, based on your purchase price and tax situation.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve helped buyers close 9 Walgreens transactions in 5 states, including one after the Sycamore buyout. A few examples:
Pharmacy
Pharmacy
Pharmacy
Pharmacy
Pharmacy
Pharmacy
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on 9 Walgreens transactions across 5 states, including a Walgreens that closed in November 2025, after the Sycamore buyout. We help investors and 1031 exchange buyers underwrite and close Walgreens properties nationwide, and our buyer representation is free.
As of 2026, Walgreens NNN properties are generally priced around 6.65% to 8.5%, with a median asking cap rate of about 7.5%. Remaining lease term is the biggest driver: about 6.5% with 10 or more years left, about 8% with 5 to 10 years and about 8.5% with under 5. That is roughly 1 percentage point higher than comparable CVS properties.
Private equity firm Sycamore Partners acquired Walgreens Boots Alliance in August 2025 for about $10 billion in equity and split it into five separate companies. Walgreens, the U.S. retail pharmacy business, is now privately held, and its stock no longer trades publicly.
Not currently. S&P, Moody's and Fitch withdrew their ratings on Walgreens after the 2025 take-private. Before the buyout, Walgreens was already rated below investment grade at BB- by S&P and Ba3 by Moody's. Buyers now focus on the specific lease, guaranty, store performance and real estate.
Walgreens announced a plan in 2024 to close about 1,200 stores by 2027, but under Sycamore that plan has been scaled back to fewer than 100 closures in 2026, and the company has begun opening new stores again. A lease generally stays in force if a store closes, but go-dark and termination clauses vary, so review each lease.
Walgreens leases typically run 10 to 25 years initially, with many legacy leases at 25 years, followed by multiple 5-year renewal options, often up to ten. Rent is often flat during the base term, though some newer leases include 5% increases every five years.
It can be, for the right buyer. Walgreens offers long leases, little to no landlord responsibility on absolute NNN leases and higher cap rates than most pharmacy tenants. The trade-off is unrated private-company credit, so it fits buyers who want more yield and are comfortable underwriting the lease, store sales and real estate rather than relying on a credit rating.
Yes, if you buy it fee simple. The building is depreciated over 39 years, and a cost segregation study can reclassify site work, paving, the drive-thru, lighting, signage and certain interior items into 5-, 7- and 15-year property, which qualifies for 100% first-year (bonus) depreciation under current law. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We closed a Walgreens after the Sycamore buyout and know how to underwrite them today. Tell us your budget and timeline; our buyer representation is completely free.
📞 954-296-6955 | 11015 Gatewood Dr Suite 102, Lakewood Ranch, FL 34211