NNN Tenant Profile · Pharmacy
CVS Pharmacy
NNN Lease Properties
Long-term corporate leases on hard-corner pharmacy sites, from a buyer’s broker with 10 CVS closings in 5 states.
Long-term corporate leases on hard-corner pharmacy sites, from a buyer’s broker with 10 CVS closings in 5 states.
A CVS NNN property is a freestanding pharmacy, typically 10,000 to 13,500 square feet with a drive-thru, leased to CVS on a long-term corporate lease of 15 to 25 years. CVS Health is rated BBB by S&P and Baa3 by Moody’s, which is investment grade, and Moody’s raised its outlook to positive in August 2026. The trade-off is that many CVS leases keep rent flat for the entire base term, so buyers weigh long-term credit against limited income growth. That combination makes CVS a classic choice for 1031 exchange buyers who want a long, hands-off lease.
Solid Investments FL has represented buyers on 10 CVS transactions across 5 states, including Florida, Texas, Arizona and Tennessee. See them in our track record. Our buyer representation is always free to you.
| Tenant / guarantor | CVS Health Corporation (NYSE: CVS) or a CVS subsidiary with a parent guarantee; confirm on each lease |
|---|---|
| Headquarters | Woonsocket, Rhode Island |
| Credit rating | S&P BBB / Moody’s Baa3 / Fitch BBB (investment grade); Moody’s outlook positive |
| Stores | 7,000+ CVS stores, plus about 1,800 pharmacies inside other retailers |
| Typical lease term | 15–25 years; newer build-to-suits are often 25 |
| Lease type | Absolute NNN, NN or ground lease; confirm who covers roof, structure and parking |
| Rent increases | Often flat during the base term; typically 5% or 10% increases in each 5-year option period |
| Renewal options | Multiple 5-year options, often up to ten |
| Typical cap rate (2026) | ~6.0%–7.25% (2026 asking median about 6.5%); around 6% with 10+ years remaining |
| Typical price range | About $1.5M–$7M; most between $2.7M and $6M |
| Typical site | 10,000–13,500 SF store with drive-thru on 1.3–2 acres |
Credit ratings as of October 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Many CVS leases have no rent increases for 20 to 25 years. Increases typically come in the option periods, usually 5% or 10% per 5-year option, and CVS leases often include up to ten options. Over a long base term, inflation erodes that fixed income, so price the deal on the cap rate you’ll actually earn.
CVS uses several lease structures. On NN leases the landlord typically covers roof, structure and sometimes parking; ground leases mean you own only the land. Read the lease before comparing cap rates.
From 2022 through 2025, CVS closed roughly 1,100 stores and opened about 200 as it right-sized its footprint. It is now growing again, with about 60 new stores planned for 2026. A corporate lease generally keeps paying even if a store goes dark, but location and prescription volume drive renewal.
Moody’s raised CVS’s outlook to positive in August 2026 as debt levels fell, with an upgrade possible. Today’s BBB / Baa3 ratings are still the lower end of investment grade.
Stores with 10+ years left trade around a 6% cap rate; shorter terms trade higher. Our own CVS closings have ranged from about 4.70% to 6.80%.
CVS sites are typically hard corners with a drive-thru on 1.3 to 2 acres, a layout that appeals to many other users. Strong real estate is your protection at lease expiration.
When you buy a CVS fee simple, you own the building and site improvements, and they are depreciable. The building itself is depreciated over 39 years, and that annual deduction can shelter much of your rental income. A cost segregation study goes further: it separates out parts of the property that can be written off much faster, and under current law that portion qualifies for 100% first-year (bonus) depreciation. With a CVS ground lease you own only the land, which is not depreciable.
A fee-simple CVS gives you the building and improvements, often $2 million or more of depreciable basis on a new store, working for you every year you own it.
Parking lot, paving, drive-thru lane, site lighting, signage, landscaping and certain interior finishes and fixtures typically qualify as 5-, 7- or 15-year property instead of 39-year building.
A cost segregation study is a modest one-time cost. Your CPA can estimate the first-year benefit on a specific store before you commit, based on your purchase price and tax situation.
1031 exchange buyers: how much of your basis is eligible depends on how your exchange is structured. Depreciation recapture applies when you sell, passive-activity rules can limit who benefits, and state conformity varies. This is general information, not tax advice — confirm with your CPA and a cost segregation specialist before you buy.
We’ve helped buyers close 10 CVS transactions in 5 states. A few examples:
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Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on 10 CVS transactions across 5 states. We help investors and 1031 exchange buyers find, underwrite and close CVS properties nationwide, and our buyer representation is free.
As of 2026, CVS NNN properties are generally priced around 6.0% to 7.25%, with a median asking cap rate of about 6.5%. Stores with 10 or more years of lease term remaining trade closer to 6%, while shorter terms, NN leases and weaker locations trade higher. Our own CVS closings have ranged from about 4.70% to 6.80%.
As of October 2026, CVS Health is rated BBB by S&P, Baa3 by Moody's and BBB by Fitch, all investment grade. In August 2026, Moody's revised its outlook to positive, citing lower debt levels and progress in CVS's insurance business.
CVS leases typically run 15 to 25 years, with newer build-to-suit stores often at 25 years, followed by multiple 5-year renewal options, often up to ten. Many leases keep rent flat during the base term, with increases of typically 5% or 10% in each option period.
From 2022 through 2025, CVS closed roughly 1,100 stores and opened about 200 as it right-sized its footprint. That phase is now largely complete: CVS plans to open about 60 new stores in 2026 while closing only a few dozen. A corporate lease generally stays in force even if a store closes, so CVS still owes rent through the term, but location quality matters for renewal.
For many investors, yes. CVS offers investment-grade corporate credit, long lease terms that can run 20 to 25 years, little to no landlord responsibility on absolute NNN leases, and price points that suit mid-size exchanges. The main trade-off is that rent is often flat during the base term.
Yes, if you buy it fee simple. The building is depreciated over 39 years, and a cost segregation study can reclassify site work, paving, the drive-thru, lighting, signage and certain interior items into 5-, 7- and 15-year property, which qualifies for 100% first-year (bonus) depreciation under current law. Ground lease buyers own only the land, which is not depreciable. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed CVS deals from Florida to Arizona. Tell us your budget and timeline; our buyer representation is completely free.
📞 954-296-6955 | 11015 Gatewood Dr Suite 102, Lakewood Ranch, FL 34211