Why You See So Many Walgreens, Rite-Aids and Duane Reades
Elaine Misonzhnik reports on why drugstores are seen as a safe bet:
"That's because drugstore chains typically sign leases for at least 20 years, with additional renewal options extending their terms to as much as 75 years in total. Moreover, two of the three major drugstore chains in the market-Walgreen Co. and CVS Caremark Corp.-come with investment grade credit ratings. That makes it easier for buyers to secure financing and is a big reason why the assets continued to trade throughout the downturn."