Walgreens NNN Properties for Sale in Florida
Walgreens (Walgreens Boots Alliance, NASDAQ: WBA) is one of the most recognizable NNN investment brands in commercial real estate. With approximately 8,000 US stores, long-term corporate leases, and hard-corner signalized intersection locations, Walgreens NNN properties have been a 1031 exchange buyer favorite for decades. The chain's recent credit watch (downgraded from BBB to BBB- in 2024) has modestly widened cap rates, creating value opportunities for investors who believe in the long-term pharmacy model.
Typical Cap Rate
6.00% - 7.00%
Lease Term
25 years (initial) + options
Price Range
$4M - $10M+
Building Size
10,800 - 15,000 SF
Lot Size
1.50 - 2.00 acres
Credit Rating
S&P: BBB-
Investment Highlights
- Long 25-year initial lease terms with multiple 5-year renewal options
- Hard-corner signalized intersection locations with drive-thru pharmacy
- Absolute NNN lease structure — zero landlord responsibilities
- Corporate guarantee from Walgreens Boots Alliance
- Florida population growth supports pharmacy demand
- Recent cap rate expansion creates buyer entry opportunity
Lease Structure
Most Walgreens leases are Absolute NNN with 25-year initial terms and 8-10 five-year renewal options, providing up to 75 years of potential occupancy. Rent increases are typically flat during the initial term with percentage bumps in option periods — though newer leases increasingly include 5-10% increases every 5 years. Tenant pays all property taxes, insurance, maintenance, roof, and structure.
Walgreens Tenant Profile
Walgreens Boots Alliance operates approximately 8,000 US drugstores plus international retail pharmacy and wholesale distribution. The company has faced retail headwinds but remains a leading pharmacy chain with strong prescription drug fulfillment. Credit: S&P BBB-, Moody's Baa3 (both investment grade). Note the company's ongoing strategic review — pay attention to lease term remaining and location quality.
Walgreens in Florida
Florida's population growth and aging demographics continue to support pharmacy demand. Strong Walgreens locations in Central Florida trade in the 6.0-6.75% cap range for properties with 15+ years of lease term remaining. Coastal and South Florida markets trade tighter (5.5-6.5%). Recent 10-15 year lease terms trade wider (6.5-7.5%) due to the shorter remaining commitment.
Why Buy Walgreens
- +One of the most recognized net lease tenants in America
- +Prime hard-corner real estate with long-term leases
- +Truly passive — zero landlord responsibility
- +Current pricing reflects credit concerns but lease term commitments are long
- +Properties retain significant redevelopment value if Walgreens vacates
Considerations
- •Verify current S&P credit rating at acquisition — rating has been trending lower
- •Watch for specific store location — Walgreens has closed underperforming units
- •Longer lease terms = tighter cap rates; newer/shorter leases trade wider
- •Some locations have 'dark' potential — understand market demographics
Related Pharmacy Tenants
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