If you know about an investment that requires lower risk, but with long-term passive income and with minimal responsibilities, will you go for it? This type of investment is called Triple Net (NNN) Properties. This is an approach of clever businessmen when they opt to buy commercial real estate such as Walgreens store for sale. If you haven’t heard about the triple net (NNN) properties, then you’ve come to the right page.
While some industries are downsizing, the health and pharmaceutical industry also needs to adapt to these challenging times.
Why Invest in Walgreens Real Estate
This pandemic has changed the dynamics of how companies and retailers run their businesses and serve their clients. It’s no wonder why Walgreens announced during the first quarter of this year that it’s selling a portion of its wholesale operations. This could be a good move as the company plans on focusing more on growing and upgrading its core retail pharmacy as well as its healthcare business.
Walgreens real estate wants to focus more on offering healthcare services instead of simply selling health products. This is a smart move since they had formed a strategic partnership with a company called AmerisourceBergen. The said partnership is extended until 2029 and is expected to boost its sales.
Should You Buy a Walgreens Store for Sale?
Covid-19 vaccinations helped revive businesses worldwide and have kept things afloat for most industries. Just like most companies, they are planning on providing sustainable and long-term value for their shareholders and clients. They have also partnered with Postmates and Kroger to deliver products to their clients as they adapt to this new setup. With their partner’s state-of-the-art logistics, they keep their global supply chain intact as they expanded their home delivery system along with their curbside pickup choices.
Walgreens has been in business for more than 110 years, gaining an asset of over 27 billion USD. Its deals in medical goods help ensure that there’s always good money regardless of the present economy. Although at this point, competition may be tough for Walgreens, and foot traffic will still be lower than before this pandemic hit the market. But as Walgreens transitions to home delivery, it can surely rise above the water. One of the best reasons for buying Walgreens real estate is its dividend, which now yields to 3.8%. Walgreens franchise is a proven business model and the safest and easiest way for you to earn a lucrative income.
To make it big in the business world, a franchise is your best bet. As a renowned international business chain, you will enjoy the advantage of not having to spend money building up your brand when you buy a Walgreens store for sale. No need to rely on luck just for your business to be successful since Walgreens is already a successful business model. Walgreens franchise cost is the least risky since it has a great amount of goodwill.
Important Aspects to Look Into When Buying a Walgreens NNN Property
Commercial real estate investing is unique because it remains a strong and valuable type of net lease investment. When you invest in Walgreens, it only involves minimal risk, making it an ideal choice for those who are only starting. If you are scouting for your potential triple net lease properties for sale, take a look at these top considerations before getting started:
1. The location of the property. Whether you invest in residential or commercial real estate, location still plays a major role. It is where potential clients visit. It is also crucial to note the actual form of the building. If you want tenants to stay longer, the property should be eye candy to other tenants in case the existing ones will cease their operations or if the lease ends. A property with easy street access and good visibility is a sure win. Your clients would not be so impressed if they have to spend so much time searching. The form of the building and its framework affect tenant decisions. Check out buildings that are easy to modify in case the current tenant leaves. This makes it easier to find a replacement without being worried about
2. The term of the lease. When you invest in a company like Walgreen, you are buying for the income stream that is generated from the lease. This will only work if you buy a triple net property that still has an extended remaining lease term, more or less ten years or even longer. But if the triple net property you are eying on has a short remaining term, asking for a price reduction from the seller is a sensible choice.
3. The creditworthiness of the tenant. One of the most important factors when considering whether or not you should buy a triple net property is the tenant’s credit score. Tenants that pay diligently regularly are guaranteed to make timely fees and it ensures a monthly stream of payment. Companies that are publicly traded have creditworthy tenants but are still susceptible to certain conditions.
4. True absolute net lease. As you may be aware by now, triple net properties like Walgreens store for sale are used as a passive investment tool. For you to have this type of investment, the leased property should be an absolute net lease. You should receive a copy of the lease before or upon entering into a purchase and sale agreement for the property. The agreement should also be reviewed by a commercial real estate attorney to evaluate the potential liabilities that come with the lease.
Key Takeaway
Making your dream of owning a well-known business reality can be quite challenging. But it’s something that can be done especially if you are looking for a quick and positive outcome. With Walgreens, real estate strategy in place, fulfilling your dream of owning your business is now within your reach. You may visit our blog for Walgreens real estate strategy or check out related articles.