Drug Stores Experience Boost Amidst Coronavirus Crisis
Updated: Apr 22, 2020
Coronavirus has had far-reaching effects and will continue to have an impact on nearly all aspects of our everyday lives. As discussed in my last blog, the economic impact of COVID-19 has resulted in uncertainty when it comes to investing in commercial real estate. One thing that has proven certain is the uptick in traffic and revenue the drug stores have experienced over the last month.
Commercial real estate is experiencing a transformation that is sector specific. While many sectors, including lodging, retail and office are struggling, grocers and drug stores are at the other end of the spectrum, struggling to keep up with the high demand and increased traffic.
National data from Foursquare shows that the retailers with the largest relative uptick in foot traffic were drug stores. Visits to drug stores like CVS and Walgreens were up 28% nationally from the week ending February 19 to the week ending March 27. Drug stores offer the unique mix of prescriptions and over-the-counter medications along with pantry staples, resulting in a one-stop-shop for many consumers that are wary of the crowds at large grocers.
While visits to drug stores rose first in the West, traffic is now the highest here in the South,
up 51% from the week ending February 19 to the week ending March 27.
As a commercial real estate advisor I pride myself in providing conservative and profitable investment opportunities to my clients. As many tenants, including national tenants, are seeking relief from their landlords, the sectors that are thriving in this uncertain environment are grocers and pharmacies.
We currently have four (4) Walgreens stores on the market as well as a CVS ground lease for sale. All of these are located in Louisiana. Give me a call if you’d like more information about these investment opportunities!
You can find more details about the available pharmacies we have by exploring the below links:
Justin Langlois, CCIM is a Commercial Real Estate Investment Advisor with Stirling Properties servicing Baton Rouge, Louisiana and surrounding markets. Please reach out to Justin to discuss your real estate investment strategies.