Cap rates for Walgreens and CVS properties reached their historic low in the net lease drug store sector in the first quarter of 2014. From the third quarter of 2013 to the first quarter of 2014, Walgreens, CVS and Rite Aid single tenant properties experienced cap rate compression of 15, 17 and 25 basis points respectively.
Part of the compression can be attributed to the significant decline of 9 percent in the supply of drug store properties currently being marketed.
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