Posted by brandoncbsre on November 24, 2008 at 04:15:32:
Location among other factors. Walgreens and CVS are absosultely adamant about being a corner with a traffic light. They dont care what they have to tear down to get there either. In my town the rumor is they are tearing down a 3 year old retail strip center to pick a corner 1 block from the new Walgreens that is still under construction.
Another thing to consider is the length of the lease on these 2 properties. A newly constructed Walgreens or CVS will have at least a 25 year NNN lease. The Wallly world building in this post may not have enough lease left to fully pay for the building, thus raising the risk level and resulting in the higher CAP.