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B+E Research and Insights

Pharmacy Cap Rates 2025: Walgreens vs. CVS Net Lease Analysis

B+E > B+E INSIGHTS > B+E Research and Insights > Pharmacy Cap Rates 2025: Walgreens vs. CVS Net Lease Analysis
02/18/2026 By B+E

Walgreens at 7.81% | CVS at 6.79%

The pharmacy net lease sector ended 2025 with a familiar structure — and one meaningful shift.

  • Walgreens average cap rate: 7.81%
  • CVS average cap rate: 6.79%

CVS has historically traded at a premium to Walgreens. That relationship continued in 2025.

What changed was the expansion of Walgreens cap rates over the course of the year.

Pharmacy Inventory: Year-End 2025 Snapshot

As of January 2, 2026:

  • Walgreens: 277 properties on market
  • CVS: 132 properties on market
  • Total combined inventory: 409 properties

Pharmacy inventory declined from mid-2025 levels, driven primarily by Rite Aid’s complete store closures. Approximately 32 Rite Aid properties that had been listed were removed from the market following its second Chapter 11 filing.

The reduction in supply did not materially compress sector-wide cap rates. Pricing remained tenant-specific.

Walgreens: Cap Rates Expanded in 2025

Walgreens cap rates moved from approximately 7.10% at year-end 2024 to 7.81% at year-end 2025.

Year-End 2025 Walgreens Metrics

  • Average Cap Rate: 7.81%
  • Median Cap Rate: 7.50%
  • Average Price: $4,529,364
  • Average NOI: $340,190
  • Average Remaining Lease Term: 7.3 years

The expansion followed:

  • A $10B private equity acquisition by Sycamore Partners
  • Approximately 500 planned store closures in 2025
  • Ongoing operational restructuring

Lease term continues to influence pricing.

Walgreens properties with 10+ years remaining trade at an average 6.64% cap rate, demonstrating that long-duration income continues to command tighter pricing.

CVS: Pricing Stability Held

CVS maintained cap rates in the mid-6% range throughout 2025.

Year-End 2025 CVS Metrics

  • Average Cap Rate: 6.79%
  • Median Cap Rate: 6.50%
  • Average Price: $5,041,896
  • Average NOI: $332,411
  • Average Remaining Lease Term: 9.8 years

CVS assets with 10+ years remaining trade at 6.21% cap rates.

The pricing spread between CVS and Walgreens reflects differences in:

  • Credit rating (BBB vs. BB-)
  • Remaining lease term
  • Balance sheet stability
  • Store rationalization strategy

This premium structure is consistent with historical underwriting patterns.

Geographic Concentration of Pharmacy Listings

Highest Walgreens concentrations:

  • Florida (20)
  • Ohio (19)
  • North Carolina (19)
  • Illinois (18)

Highest CVS concentrations:

  • Texas (22)
  • Florida (14)
  • New York (9)

Texas leads total pharmacy listings with 37 properties on market.

Sunbelt markets continue to represent the largest share of active pharmacy inventory.

What Changed in 2025

  • Walgreens cap rates expanded year-over-year.
  • CVS cap rates remained relatively stable.
  • Lease term continued to compress pricing across both brands.
  • Rite Aid’s exit reduced listed supply but did not reset sector pricing.

The pharmacy sector remains credit-driven rather than structurally disrupted.

Outlook for 2026

The key variable moving forward is Walgreens’ stabilization under private ownership.

If restructuring progresses and closures slow, cap rates could compress toward historical norms.

If closures accelerate, further expansion is possible.

CVS is likely to maintain premium pricing so long as credit strength and lease term discipline remain intact.

Download the Year-End 2025 Pharmacy Inventory Report

The full report includes:

  • Monthly cap rate comparisons
  • NOI and pricing analysis
  • Lease term breakdowns
  • State-by-state inventory data
  • Credit and ownership profiles

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