Walgreens Credit Rating & NNN Cap Rate (2026)

Walgreens Business Overview & NNN Investment Profile

Walgreens Boots Alliance went private on August 28, 2025, when an affiliate of Sycamore Partners completed its acquisition of the company (Form 8-K, August 28, 2025); the March 6, 2025 announcement valued the transaction at up to $23.7 billion. After the closing, Walgreens, The Boots Group, Shields Health Solutions, CareCentrix and VillageMD operate as separate standalone companies (company press release, August 28, 2025). The company website lists about 8,000 Walgreens locations in the 50 states and Puerto Rico (accessed October 8, 2026).

Walgreens Boots Alliance reported that S&P and Moody’s downgraded its long-term ratings below investment grade in fiscal 2024 (Form 10-K for fiscal 2024), and its last quarterly report before the buyout still showed below investment grade ratings, with Moody’s under review and S&P on negative credit watch (Form 10-Q, as of May 31, 2025). Walgreens falls outside portfolios that require a rating at or above BBB-/Baa3. See our investment grade guide for how that threshold is applied.

For NNN investors, the issues are private ownership with limited public financial disclosure, and store closures. In October 2024, Walgreens Boots Alliance said it expected to close an aggregate of 1,200 to 1,300 stores over the next three years, including approximately 500 stores in fiscal 2025 (Form 8-K, October 15, 2024). We have not found a primary source on the closure plan after the buyout, so confirm the status of a specific store. Long lease terms help landlords only as far as the obligor remains solvent and in the store.

Walgreens Credit Rating Analysis

Before the buyout, Walgreens Boots Alliance’s last quarterly report listed a Moody’s corporate family rating and an S&P long-term rating, both below investment grade (Form 10-Q, as of May 31, 2025). As a private company, it no longer files quarterly reports with the SEC, which limits what landlords and lenders can underwrite.

Source: Our ratings database, checked October 8, 2026.

Credit risks to consider include pressure on pharmacy reimbursement and front-store sales, competition from mail-order and online pharmacy, and store closures. Because Walgreens is private, landlords should rely on the lease itself, the guarantor named in it, store-level performance where available, and the value of the real estate. Compare the credit with others on our credit tenant ratings index.

Walgreens credit and cap rate data sheet

A printable sheet with the Walgreens rating status and its sources, the 358 observed listings broken out by asking cap rate, price, lease term and state, and how each figure is counted. Save it as a PDF or download the figures as a CSV.

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Walgreens NNN Lease Structure

Walgreens Boots Alliance reported that initial terms for its leased U.S. premises were typically 10 to 25 years, followed by renewal options at five-year intervals, and may include rent escalation clauses (fiscal 2024 Form 10-K). Rent schedules vary, so confirm any increases in the lease. Check each lease for any operating covenant and for what the tenant owes if it closes the store. Leases may name Walgreen Co. or another entity as tenant, with or without a guaranty; after the 2025 buyout and separation into standalone companies, landlords should confirm which entity is the tenant and whether any guaranty still stands behind the lease.

The median building size across the Walgreens listings we track is 14,555 square feet; confirm the building size, lot size, drive-through and site layout for a specific property. A vacated building may be re-leased to other users, such as discount retailers, healthcare providers or grocers, though second-generation rent may be below the original Walgreens rent and conversion costs can be significant.

Walgreens NNN Cap Rate & Pricing Trends

Live asking cap rates for Walgreens and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 26, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.

Asking cap rates vary with remaining lease term, rent and location, so compare a property with listings that have a similar remaining term. Asking prices cluster between about $3.28M and $5.30M, with a median near $4.08M. Asking cap rates are not closing cap rates.

Lender appetite for a privately held tenant without an investment grade rating varies, and leverage and coverage requirements can differ from those for rated tenants; confirm terms with lenders. Owners with loans maturing soon should price a refinance alongside any sale analysis.

Walgreens NNN market: buying or owning one

Buying

358 Walgreens NNN listings are observed for sale in 42 states, plus 3 with no U.S. state on file, as of October 26, 2026, with a median asking cap rate of 7.50% among the 339 that state one.

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Owning

Own a Walgreens property? See how yours compares with what is currently listed. Enter the city, state and lease years left to see asking cap rates for listings near you and for your lease term, and the Investment Grade team will follow up with a pricing view.

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Asking figures come from publicly marketed offerings and broker materials observed by Investment Grade; an asking cap rate is not a closed-sale price. Your details go to the Investment Grade team and are never shared with listing brokers or other parties without your permission.

Walgreens Real Estate Footprint

Walgreens Boots Alliance operated 8,560 retail and healthcare locations in its U.S. Retail Pharmacy segment as of August 31, 2024 (fiscal 2024 Form 10-K); the company website now lists about 8,000 locations (accessed October 8, 2026). Walgreens Boots Alliance said the cadence of expected closures under the plan announced in October 2024 prioritized estimated cash flow benefits, underperforming locations and lease expirations (Form 8-K, October 15, 2024).

Walgreens Outlook

Under private ownership, Walgreens no longer reports its financial condition or store closures in SEC filings, so landlords should confirm the status of a specific store and watch for company announcements about further closures.

Walgreens NNN Investment: Pros & Cons

Comparable NNN Tenants

Cap rates are medians of asking cap rates across active listings tracked by InvestmentGrade.com; the latest Walgreens listing observation is October 26, 2026. See our CVS vs Walgreens comparison and Walgreens owner update.

Walgreens Credit Rating FAQ