CVS Pharmacy

CVS Pharmacy – Chandler, AZ (Phoenix MSA)

This CVS Pharmacy property in Chandler, Arizona—part of the Phoenix Metropolitan Statistical Area—is secured by a long-term absolute triple-net (NNN) lease with CVS Health, a Fortune 500, investment-grade tenant. The property delivers truly passive, bond-like income with zero landlord responsibilities, backed by a national healthcare and convenience services provider with a strong corporate guarantee.

Tenant Overview

CVS Pharmacy is a wholly owned subsidiary of CVS Health (NYSE: CVS), one of the most trusted healthcare brands in the United States. Operating over 9,000 retail pharmacy locations, CVS offers high-frequency, essential services including:

• Prescription fulfillment and management
• Immunizations and flu shots
• Wellness screenings and in-store clinics
• Over-the-counter medications and healthcare products
• Convenience retail including personal care and basic groceries

CVS continues to expand its role in community healthcare by integrating in-store clinics, telehealth, and insurance offerings. The brand’s evolution into a healthcare destination makes it highly relevant across all demographic groups, especially in high-growth suburban markets like Chandler.

Lease Structure

The Chandler property operates under an absolute NNN lease. Under this structure, CVS is responsible for all property-related expenses including:

• Real estate taxes
• Insurance
• Maintenance
• Capital repairs, including roof and structure

For the investor, this creates a fully passive ownership experience with no operational obligations. The lease includes a long primary term and structured renewal options, providing long-term cash flow certainty and reducing turnover risk.

Triple-net lease investments with corporate tenants like CVS are prized for their stability, simplicity, and inflation-protected cash flows—especially in dynamic, high-growth real estate markets.

Chandler Market Overview

Chandler is a highly developed and affluent suburb in the southeast portion of the Phoenix metropolitan area, with a population exceeding 260,000 residents. It is one of Arizona’s top growth cities and a major employment center, driven by sectors including technology, education, medical services, and advanced manufacturing.

Chandler is home to major corporate employers, award-winning school systems, and a robust housing market. Its economic profile is supported by a combination of high-paying jobs, family-friendly neighborhoods, and regional infrastructure investment. The city is a consistent target for institutional capital due to its blend of quality demographics, pro-growth governance, and proximity to Phoenix’s urban core.

Demographics and Demand Drivers

Chandler’s population is well-educated, high-earning, and rapidly growing. Median household income far exceeds state and national averages. The area is characterized by high homeownership, low vacancy rates, and an attractive quality of life that continues to draw residents and employers alike.

The strong demographic profile supports year-round demand for retail pharmacy services, walk-in medical care, and front-end convenience purchases—functions that CVS fulfills at scale. As Arizona continues to see population inflows, Chandler remains a premier location for long-term real estate investments.

Community Role and Retail Relevance

CVS plays a vital role in the Chandler community, serving as a go-to destination for prescriptions, immunizations, healthcare advice, and personal essentials. The brand benefits from daily necessity-based traffic and strong consumer loyalty. Its strategic location near residential neighborhoods and commercial corridors ensures consistent visitation.

With the healthcare landscape shifting toward local, integrated service delivery, CVS’s position at the intersection of pharmacy and clinical care gives it unique relevance. The company’s strategy to blend convenience retail with direct medical services increases visit frequency and makes the brand more embedded in its community footprint.

Tenant Credit and Investment Security

CVS Health is a publicly traded company with investment-grade credit ratings from all major agencies. As a Fortune 500 enterprise with billions in annual revenue, CVS offers strong financial backing and has shown a long-term commitment to its retail locations. The company’s stable business model, growth in healthcare services, and strong real estate strategy all contribute to the reliability of their leased assets.

This lease benefits from a corporate guarantee, providing investors with minimal credit risk and predictable income streams. With a long lease term and a national tenant, the property offers low volatility and strong capital preservation potential.

Investment Highlights

• Absolute NNN lease with zero landlord responsibilities
• Corporate-guaranteed lease by CVS Health, an investment-grade Fortune 500 company
• High-frequency, recession-resistant essential services including pharmacy, retail, and healthcare
• Located in Chandler, one of the fastest-growing, highest-income cities in the Phoenix MSA
• Strong demographics with high household incomes, homeownership, and educational attainment
• Strategic visibility along major thoroughfares in a high-traffic retail and residential corridor
• Long-term lease with renewal options and built-in rent escalations for income stability

Conclusion

This CVS Pharmacy in Chandler, Arizona represents a premier net lease opportunity in one of the Southwest’s most desirable suburban markets. With passive income backed by a credit-rated tenant, an absolute NNN lease structure, and exposure to the booming Phoenix metro area, the asset checks all the boxes for both institutional and private investors. Long-term demographic strength, tenant reliability, and healthcare relevance make this a durable addition to any income-focused real estate portfolio