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SOURCE Pharma Property Group
Walgreens, CVS and Rite Aid Property Sales Continue to Decline in 2017
SAN DIEGO, Dec. 18, 2017 /PRNewswire/ -- "Although drugstore property transactions on a nationwide level have decreased 32% when comparing 2017 versus 2016 and a 37% decrease when comparing 2017 closings to peak 2015 levels, we are pleased to announce that in 2017 Pharma Property Group (PPG) has once again increased its revenue for the 5th straight year in a row which has included every year since our inception in 2012," stated Jason Stuart Pongsrikul, Managing Principal and Founder of Pharma Property Group.
"The drop in overall drugstore property sales during 2017 has been caused by a number of factors:
I do believe moving into 2018 as the market continues to readjust from a pricing standpoint and we see more clarity on the Walgreens purchase of Rite Aid stores, there will be an increase in both drugstore product supply and in drugstore transactions moving the market back towards normalized levels. Additionally, if the CVS purchase of Aetna is approved then I think it bodes well for the drugstore property pool mindset as it will illustrate increased barriers to entry into the brick and mortar pharmacy business," stated Mr. Pongsrikul.
"Overall 2017 was a much needed adjustment year for pricing. Walgreens CAP rate levels have increased 20 basis points since their peak in 2015, CVS CAP rate levels have climbed 10 basis points since their peak in 2016 and Rite Aid CAP rates experienced a 50 basis point increase since their peak during 2015 to 2016. We should continue to see CAP rate levels increase throughout 2018 and return to more normalized levels as we distance ourselves from the 2015 and 2016 peak pricing," explained Mr. Pongsrikul.
Based in San Diego, California, Pharma Property Group (www.pharmapropertygroup.com) was founded in 2012 by Jason Stuart Pongsrikul who has closed over $1 Billion in net leased commercial properties throughout the country during the last decade. Mr. Pongsrikul was a top 30 agent out of 1,300 agents for one of the top commercial real estate investment firms in the nation and in 2012 recognized the need for further broker specialization in the drugstore property sector.
Mr. Pongsrikul formed Pharma Property Group (PPG) to specialize exclusively in providing commercial real estate services to landlords who own properties occupied by Walgreens, CVS and Rite Aid. Pharma Property Group is now 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.
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