Property type
Pharmacy properties represent essential healthcare retail investments for 1031 exchange portfolios. These properties house major drugstore chains that provide prescription medications, healthcare products, and convenience items to communities. In Austin, TX, pharmacy properties serve the region's growing and aging population.
Pharmacy properties typically feature long-term NNN leases with investment-grade credit tenants. The essential nature of pharmacy services and prescription medication needs provides stable income regardless of economic conditions, making these properties attractive for 1031 exchange investors seeking reliable cash flow.
Investment benefits
Market data
Typical Cap Rate
5.0% - 6.0%
Typical Lease Term
20-25 years
Common Tenants
CVS, Walgreens, Rite Aid
Are pharmacy properties good investments for 1031 exchanges?
Yes, pharmacy properties are excellent 1031 exchange investments due to their essential healthcare services, investment-grade tenants, and long-term NNN lease structures. The aging population continues to drive demand for prescription medications and healthcare products.
What is the outlook for pharmacy real estate?
Pharmacy real estate benefits from demographic trends including an aging population requiring more prescription medications. While retail pharmacies face competition from mail-order and online pharmacies, physical locations remain important for immediate medication needs and healthcare services.
What lease terms are typical for pharmacy properties?
Pharmacy properties typically feature 20-25 year initial lease terms with multiple renewal options. Leases are usually absolute NNN with tenants responsible for all operating expenses, providing passive income for investors.
Related services
NNN Replacement Property Identification
Curated shortlists of absolute and regular NNN assets where credit tenants absorb taxes, insurance, and upkeep.
View serviceSingle Tenant Retail Acquisition Briefs
Asset briefs for quick service restaurant, pharmacy, dollar, and fuel operators.
View serviceMultifamily Reinvestment Briefs
Bridge multifamily sale proceeds into stable replacement income.
View serviceIndustrial and Flex Net Lease Targeting
Source logistics, flex, and last mile industrial with tenant maintenance coverage.
View service