On the surface, a Walgreens investment may look like all the other Walgreens. Au contraire mon frere!
Yes, the tenant credit is the same and the square footage is similar. However, there are many variables when comparing different Walgreens investments.
Everyday, we help our Walgreens 1031 clients evaluate and compare different NNN investment properties. Our clients are able to compare apples to apples due to our analysis and insights about which Walgreens NNN property most fits their criteria and investment goals.
Here is a quick list we did to help a Walgreens 1031 client do a side by side comparison of three Walgreens we made offers on. Note the additional data points in the list besides price, cap rate, rent amount etc.
Is the store open 24 hours? Does it have a drive thru? What about beer and liquor? How big is the lot? What are the reported store sales? What does the landlord have to take care of? (not all Walgreens are triple net!) How fast is the population growing? Is the area poor, wealthy or middle class?
Which deal would you choose? Yes, cap rate plays a part in relation to lease term and price but what is the better investment considering the other factors?
We help our clients answer these questions.
On many deals we take it several steps further and drill down the data even more. Other data points we help clients consider when buying a Walgreens 1031 NNN property:
- What are market rents compared to the contract rent? What can the building be leased for now and in the future?
- What is the quality of construction? Brick? Block? Upgraded features?
- What is the competitive environment? Where is the closest CVS or Rite Aid? What about another Walgreens?
- What is the age demographic? Is the area full of young people who are healthy? Or does the area have an aging population that needs prescriptions filled?
- What is the consumer spending potential? Is there underserved demand in the marketplace? Is it over supplied?
We answer all this and more, for you.
Not all Walgreens investments are created equal and neither are the people who sell them.
Make sure you have a Walgreens NNN investment advisor on your side.
Call us at 1-866-539-1777 or email us here for a free Walgreens 1031 or NNN property consultation.