Net Lease Market Report: Pharmacy

Pharmacy News

• The number of US pharmacy properties for sale has increased quarter over quarter from 421 listings to 478 listings.
• CVS, Walgreens, an Rite Aid are all transitioning their current real estate needs with store closings and openings happening worldwide.
• Amazon is shutting down its in-house healthcare unit, Amazon Care. This decision coincides with Amazon’s announcement it is purchasing One Medical for $3.9 billion.
• Rite Aid rejected a takeover bid from Spear Point Capital Management for $815 Million.
• CVS’s Q2 earnings increased 11% compared to the prior year period. This was mainly driven by prescription and front store volume with COVID test kits, pharmacy brand inflation, and an extended cold/flu season. CVS is acquiring Signify Health, a provider of technology and services for home health. This could have long term effects on the industry as more and more consumers move towards telemedicine.
• Walgreens is opening a VillageMD clinic in their stores every 3 days in 2022. The company invested $5.2 billion into VillageMD in 2021, in a move to attach doctor-staffed clinics to their drugstores.