Typically a safe haven for investors, sales volume over the past 12 months in the drug store sector declined 49% to $599 million from a year ago. On a quarterly basis, sales volume of this niche asset declined a staggering 74% to $57 million from a year ago. Sellers of drug stores have reevaluated their expectations as they were willing to accept 92.6% of their asking price. Other retail sellers achieved the 91.3% of their asking price.

On a per-square-foot basis, pricing for drug stores has held relatively flat year over year, falling roughly a dollar on average to $436. Other retail assets traded on average at $170 psf, marking an 8% yoy decline. Average cap rates on drug stores increased 45 bps to slightly under 6.7%. Drug stores continue to command premium pricing, with the top quartile of these assets trading at more than $487 per square foot with caps below the 6.4% mark. The bottom quartile traded at $382 with caps topping the 7% mark.

Private buyers and sellers continue to dominate investor composition, acquiring 79% and disposing of 89% of assets traded. Users were the only other significant buyers, accounting for 19% of acquisition volume. The Southeast led all regions, with $155 million in drug store properties sold, representing 26% of the regional total.