PPG List Rite Aid Recent Lease Extension
“PPG has just listed the Rite Aid in Kutztown, PA after a recent lease extension to take the lease to a full 10 years before the next option. This store is an exceptional performer for Rite Aid and should attract numerous investors as there is no other competing Walgreens for ten miles and no other competing Rite Aid location for over eight miles,” explained Jason Pongsrikul, Managing Principal of Pharma Property Group.
“Rite Aid has been actively working with landlords to extend leases at profitable stores and many owners have been taking advantage of this to reposition out of their stores post lease extension to capitalize on the compressed CAP rate environment. Many of these investors are trading into Walgreens, CVS or diversifying out of the drugstore market all together,” continued Mr. Pongsrikul.
“There are certain investors with higher risk tolerances that are purchasing Rite Aid properties if the rent levels are below or near market rent levels. Many Rite Aid buyers are also only considering locations that have no competing Walgreens or CVS locations in the immediate area and require strong sales volumes. Rite Aid transactions were up significantly in 2021 and we expect this to continue into 2022,” stated Mr. Pongsrikul.
Pharma Property Group (PPG) has over $1.5 Billion in closing transaction experience and specializes in providing commercial real estate services to landlords who own properties occupied by Walgreens, CVS and Rite Aid. Pharma Property Group is one of the top brokerage firms in the country in drugstore property closing volume and has an unparalleled drugstore marketing platform providing access to the largest pool of drugstore landlords in the nation.
Jason Pongsrikul, Managing Principal
Pharma Property Group
1979 Chicago Street
San Diego, CA 92110
Office: (858) 860-6591