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Walgreens NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

Last Year Cap

7.0%

This Year Cap

7.3%

Cap Change

0.3%

Last Year Rating

BB

This Year Rating

BB-

Rating Change

Down

Walgreens – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate
1031 Exchange
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Credit (what net-lease buyers care about)

Credit Snapshot

Walgreens

Cap Rates NNN
Last Year 7.0%
This Year 7.3%
Change 0.3%
S&P Rating CREDIT
Last Year BB
This Year BB-
Change Down

Walgreens Net Lease: Secure, Essential Investment

Walgreens is a nationally recognized pharmacy retail operator and a long-standing net lease tenant. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.

For 1031 exchange buyers, Walgreens NNN Properties are important to compare against Walgreens ground lease properties, as lease structure can materially impact pricing, financing, and long-term resale value.

Investors often target Walgreens assets for:

  • Stable Income Potential
  • Essential Pharmacy Retail Demand
  • Established National Brand Presence
  • Attractive 1031 Exchange Compatibility

Walgreens properties require close comparison of lease structure, as many assets are marketed as NNN but may include variations in rent growth, remaining lease term, and landlord responsibilities. Understanding these factors is critical when evaluating pricing and long-term performance.

Walgreens Properties for 1031 Exchange Buyers

Walgreens properties often trade differently than other net lease retail assets due to their large format, long-term leases, and evolving credit profile. Buyers should carefully evaluate lease structure, remaining term, renewal options, landlord responsibilities, and site fundamentals to understand long-term risk and return.

Walgreens – Credit Trend (S&P vs Moody’s)

Tenant_Rating_Trend

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
1 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2022 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
2 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2023 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
3 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2024 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
4 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2025 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
5 admin2 2025 03:43 PM admin2 2025 03:43 PM 99centsonlystoresllc 99 Cents Only Stores, LLC 2022 Caa2 CCC+ Substantial Risk Substantial Risk 2 2
TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank

Walgreens Investment Market Statistics

AVERAGE SALE PRICE

$8,000,000

BUILDING SIZE

13,000 – 15,000 SF

AVERAGE NOI

$450,000

LAND

1.5 – 2.5 acres

$/SF RANGE

$300 – $600

LEASE TERM SHOWN

15 years

Walgreens Investor Snapshot (Quick Facts)

Origins & Growth (Past)

  • Founded as neighborhood drugstore
  • Expanded across U.S. markets
  • Grew through retail acquisitions
  • Built nationwide pharmacy network
  • Introduced drive-thru pharmacy concept
  • Expanded health and wellness services
  • Became leading U.S. pharmacy chain

Where Walgreens Stands Today

  • Large U.S. pharmacy footprint
  • Leading retail pharmacy operator
  • High prescription-driven traffic
  • Integrated healthcare services platform
  • Expanding digital pharmacy services
  • Growing loyalty and rewards programs
  • Focus on cost efficiency

Where Walgreens Stands Today

  • More healthcare services
  • Increased automation focus
  • Digital pharmacy growth
  • Stronger loyalty programs
  • Optimized store formats
  • Expanding clinic partnerships
  • Healthcare demand tailwinds

Why investors buy Walgreens NNN Properties or Walgreens ground Lease Properties?

Pros (what buyers like)

  • Established national brand presence
    Well-known pharmacy retailer with long operating history and nationwide footprint
  • Essential healthcare-driven demand
    Pharmacy and health services drive consistent, needs-based customer visits
  • Prime real estate locations
    Stores typically located on signalized corners with strong traffic and visibility
  • Attractive lease structures
    Long-term NNN and ground leases appeal to passive and 1031 buyers

Cons (what can bite you)

  • Lease structure variability
    Some deals are NN or modified NNN with landlord responsibility exposure
  • Credit and sector pressure
    Retail pharmacy sector facing margin pressure and evolving business models
  • Flat or limited rent growth
    Many leases feature minimal rent increases or option-based bumps
  • Re-tenanting risk
    Large, single-tenant layouts can limit alternative uses if vacated

Find out more

Walgreens 1031 exchange, Walgreens real estate, pharmacy NNN properties, net lease retail investments

Walgreens Background & History

Walgreens is a national pharmacy retail company best known for its network of neighborhood drugstores, many of which include drive-thru pharmacy services. What began as a single drugstore evolved into a leading pharmacy retail model focused on prescriptions, health services, and everyday convenience items.

Over time, the company built a nationwide footprint and expanded beyond traditional retail, offering healthcare services, vaccinations, and wellness products. Today, customers rely on Walgreens locations for prescriptions, over-the-counter medications, health essentials, and convenient retail purchases that support daily needs.

As consumer preferences shifted toward convenience and healthcare access, the brand adapted through extended hours, drive-thru formats, and operational efficiencies that support high customer volume.

Why Walgreens Matters to NNN Investors

Today, Walgreens operates one of the largest pharmacy networks in the United States, serving millions of customers each day. The business model is centered on prescription-driven traffic, recurring healthcare demand, and locations positioned on high-traffic corridors and signalized intersections.

Many stores benefit from consistent pharmacy demand, which helps drive repeat visits and in-store purchases. In addition, the company continues to invest in healthcare services, digital platforms, and partnerships to strengthen performance.

This focus on healthcare-driven retail helps explain why Walgreens remains relevant even as the broader retail and pharmacy sectors evolve. Management continues to adapt store formats and operations to align with changing consumer behavior and healthcare trends.

What Buyers and Sellers Should Evaluate

For investors evaluating Walgreens NNN properties, a Walgreens net lease, or a Walgreens ground lease, the investment thesis is typically centered on essential healthcare demand supported by strong real estate fundamentals. As a result, buyers often place greater emphasis on lease structure, remaining term, and location quality than on brand recognition alone.

Common searches include Walgreens real estate, Walgreens cap rate, Walgreens lease term, Walgreens tenant credit, and store performance. Ultimately, Walgreens net lease value is driven by site-specific factors, lease economics, and how the location fits within the company’s broader network.

As the pharmacy sector continues to evolve, the strongest Walgreens locations tend to be those that remain essential within their trade areas. Buyers and sellers should therefore evaluate each property individually, including ingress and egress, visibility, traffic counts, surrounding population, competition, and lease language that defines landlord responsibilities.

In addition, investors should consider long-term cash flow durability, tenant credit trends, and how the asset may perform across different hold periods and exit strategies.

Corporate vs. Franchise | Store Count

Walgreens operates under a fully corporate-owned model, with no franchise structure. All store locations are operated by the company, making the lease obligor typically the corporate entity—an important consideration for investor underwriting. In the U.S., Walgreens operates ~8,500+ locations, giving it one of the largest pharmacy retail footprints nationwide. For investors, tenant credit, lease structure, and store performance often matter more than total store count.

Walgreens Financial Snapshot

Walgreens operates as part of Walgreens Boots Alliance, a publicly traded company. The parent reports ~$135B+ in annual revenue, supported by a large pharmacy retail network, healthcare services, and international operations that underpin its net lease obligations.

Walgreens Lease Types

Most single-tenant Walgreens properties are structured as NNN or modified NNN leases, though lease terms vary by deal. Many assets are marketed as NNN, but some leases may include landlord responsibility for roof, structure, or certain site components. In some cases, properties may also be structured as ground leases, offering reduced landlord responsibilities and a different risk profile. As a result, buyers should carefully review lease language, expense responsibilities, rent escalations, and remaining term before underwriting and pricing.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing Walgreens ground lease properties or fee simple Walgreens assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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