CVS Properties with NNN Lease Available for Sale
CVS NNN Properties for sale are a good investment option for commercial real estate investors. Read more to discover the many benefits of investing in a CVS NNN property.
What is CVS?
Customer Value Store or CVS is a health and wellness destination because they provide essential health care support. With over 9,900 pharmacy locations, CVS continues to engage with customers to deliver community-based solutions for the healthcare needs of its customers.
The standalone stores offer more than the usual medical needs. Customers will have access to many health, wellness, personal care, and beauty products. The stores even have general merchandise, snacks, and groceries for your one-stop-shop needs.
CVS is a community partner when it comes to the health and wellness of everyone around them. They understand that each person has varying health needs. While dispensing millions of prescriptions each year, CVS counsels customers and provides cost-effective options.
From an investment standpoint, CVS NNN properties for sale are good options for any real estate investor wanting to build a portfolio. Learn more about this hot NNN listing today.
How Profitable are CVS Pharmacies?
Dr. Michael Burry, a hedge fund manager and expert has named CVS Health a top equity holding. The company has focused on paying off debt rather than raising the dividend or recovering and buying back stock. With that strategy, it has one of the cheapest large-cap stocks.
CVS performed relatively well in 2021. The business has a steady and stable profit flow, low valuation, and extensive free cash flow. The stocks are on the upside with a hefty margin of safety.
Year in, year out since 2018, CVS continues to report an uptrend on its net revenue. This is certainly a good sign of the profitability of CVS NNN properties for sale. It earns revenues from different sources that it can even afford to remove high-margin products like tobacco.
Is CVS Doing Well Financially?
Despite the continued decline of brick-and-mortar retail as customers shift to online sales, CVS continues to thrive to survive and grow.
CVS maintains 4 business divisions:
Pharmacy benefit management
The pharmacy division accounts for more than 67% of its total revenue, though it may be a misnomer to call their CVS outlets a simple pharmacy that dispenses prescription drugs. It is also a retail shop with various products from cookies to candies, as well as skincare, health, and beauty products.
CVS NNN properties for sale will be a sound investment for the discerning commercial real estate investor.
Top Reasons to Invest in CVS NNN Properties for Sale
The company is the largest pharmaceutical chain in the US, with over 9,900 stores. Here are more reasons to invest in CVS NNN properties for sale.
The investment is a reliable source of passive income. You will receive paychecks every month, on the dot, because there is a fixed rent that is due to you at the end of every month. This is not at all affected by economic conditions or store sales.
You will have minimal landlord management duties because the triple net lease frees you of property maintenance and upkeep.
It’s a low-risk investment where your tenant pays for all the taxes, maintenance, insurance fees, and rent and utility costs.
The investment is a long-term one, meaning you’ll get returns on it for many years to come. Some net lease agreements may even go on for two decades or more.
Your CVS NNN property is a low-risk conservative method to grow equity.
You can get tax breaks from the triple net lease agreement.
When you are ready to invest in another business and the market is at a high, you can consider selling the building.
CVS pharmacies run a pharmacy benefit management program with millions of registered customers.
There is a very low vacancy rate.
A Guide to Buying Triple Net Leased Properties
If you’re set to purchase CVS NNN properties for sale, here is a rundown of the benefits of NNN investments:
This is a low-risk investment as the tenant bears bigger risk factors. These tenants are investment-grade tenants who will generally not give you a headache on rent collection.
A triple N investment is a source of continuous income stream because the tenants will pay their rent each month.
Your triple net lease agreement guarantees long-term tenancy. Tenants will usually sign up for a 7-10 year lease contract.
Minimal landlord responsibilities are expected of you as the agreement covers that the tenant maintains the property.
Enjoy lower turnover rates and lower marketing expenses. Tenants stay for a long time, so there are minimal expenses on your end for marketing the property.
As with all commercial properties, you get to enjoy tax benefits.
The Net Lease World Advantage
Net Lease World is the best online platform where you can search for high-quality, high-profit yielding triple net lease properties. We have an extensive listing of various commercial properties all over the country.
If you’re seeking to purchase CVS NNN properties for sale, Net Lease World is your best partner to find the best property to fit your needs. We provide a simple way of searching for high-quality net lease investments across the country.
The site is simple to navigate; we have agents responsive to all your queries. You can easily find properties, plot in the location, and indicate your purchase price and cap rate.
CVS NNN for Sale
Everybody ages and new babies are born, which means that the demand for pharmaceuticals, beauty products, and other health-related items never stops. It’s not surprising that the retail pharmacy industry is a hot commodity and CVS is one of the top players. The means of accessing quality products and services from CVS has become much easier with the introduction of triple net leases, or NNNs.
Why Invest in CVS NNN Properties
If you have a commercial property or rental space, you know how hard it is to keep up with all the rental payments, taxes, and insurance costs. A triple net lease (NNN) is a way to shift many of these obligations onto a tenant in exchange for a greater amount of rent. This type of lease makes it easier for investors to purchase CVS NNNs and enjoy the long-term benefits that come with them.
NNN leases are typically long-term agreements that provide investors with a secure and consistent income. You’re looking at 20 years or more of stability, which is beneficial for landlords and property owners that are looking for a safe and consistent stream of cash flow.
No Management Required
Another benefit of investing in a NNN is that no property management is required. The tenants are responsible for all the upkeep, maintenance, and repairs. This means that you don’t have to worry about day-to-day operations or dealing with any tenant issues.
In addition to those already mentioned, NNNs offer tax benefits. When you have a property under a triple-net lease, you are able to take advantage of the depreciation benefits and deduct all related expenses from your taxes. This helps to keep your taxable income in check.
Involves Minimal Risks
Since you are not responsible for the upkeep of your property, you don’t have to worry about any major repair costs down the line. This is one of the main benefits of investing in a CVS NNN, as the tenant is responsible for any repairs or maintenance that needs to be done. All you have to do is collect your rent payments.
Lastly, you can benefit from the long-term appreciation of your property. As time goes by, the value of your property will increase, which means that you can see a higher return on investment when it comes time to sell.
Why Should You Choose Net Lease World for CVS NNN for Sale
CVS is arguably one of the most recognizable names in the retail pharmacy industry. Having one in your portfolio will not only provide you with a diversified portfolio but also with a steady stream of income that can help to diversify your investments.
Here are some other benefits of purchasing CVS NNNs:
Located in Highly Visible Locations
: CVS stores are usually located in highly visible locations, which means they can easily be seen by passing traffic.
Highly Recognized Brand
: CVS is a well-known and established brand that customers trust and frequent, which helps to ensure a steady flow of revenue for owners.
Secure and Consistent Income
: CVS leases are long-term agreements that provide investors with secure and consistent income.
Low Maintenance Costs
: Since tenants are responsible for all repairs, maintenance, and upkeep costs, you don’t have to worry about dealing with any tenant issues or managing day-to-day tasks.
Important Things To Note
With many benefits come certain risks. Before investing in a CVS NNN, make sure you understand the terms of the lease and have done your research. There are also major repurposing risks that you should be aware of, as CVS can change locations or close down its store.
At the moment, CVS plans to repurpose some of its stores into a more healthcare-based offering. CVS plans to close a huge number of stores in the next three years, which could drastically reduce the value of your investment. But, it doesn’t mean that they are not a good investment. CVS is still one of the most reliable and recognizable brands in the industry.
Another thing that you should know is that NNN’s initial term in general, including CVS, usually has flat rent. That means you will get a steady income during the entire term of the lease. It’s important to remember that CVS doesn’t usually offer any rent increases and flat rent is only offered in long-term leases of 20 years or more.
With its popularity, NNN is becoming more common as well. Due to that, there is increased competition when it comes to investing in CVS NNNs. It is important that you do your research and understand the risks before diving into this type of investment. Location-wise, you can never go wrong in Florida as many cities there have been expecting huge population growth in the upcoming years. Not to mention the striving economy, which will drive more people to shop at CVS.
Let Net Lease World Help
Overall, investing in a CVS NNN can be highly profitable and rewarding. As long as you do your research and understand all critical factors that will affect your investment, you can make a wise decision and enjoy the returns that come with it.
At Net Lease World, we specialize in triple net lease investments. We have extensive experience in the industry and are here to help guide you through every aspect of investing in a CVS NNN. Our team is committed to providing investors with expert advice and assistance to ensure that they make the right investments. What’s more, we have tons of properties that you can choose from. From CVS to other retail and office spaces as well as supermarkets and restaurants, you can find it all on our website. So, if you are interested in investing in a CVS NNN, feel free to contact us today and get started on your journey toward NNN ownership.