09/27/2022 By B+E
B+E Market Report: Pharmacy
B+E takes a look at current net lease Pharmacy market activity:
- Historical & on market sale prices
- On market cap rates
- Lease terms & more!
- 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.