CVS Pharmacy

CVS Pharmacy – McKinney, TX (Dallas–Fort Worth MSA)

This CVS Pharmacy in McKinney, Texas, located within the high-growth Dallas–Fort Worth metropolitan statistical area, is backed by a long-term absolute triple-net (NNN) lease with CVS Health, a Fortune 500, investment-grade tenant. The offering represents a strong opportunity to acquire a passive, income-generating net lease investment secured by one of the nation’s most reliable and recession-resistant retail healthcare brands.

Tenant Overview – CVS Health

CVS Pharmacy is a subsidiary of CVS Health (NYSE: CVS), one of the largest pharmacy chains in the United States with over 9,000 locations nationwide. CVS provides essential daily-use services including prescription fulfillment, vaccinations, wellness screenings, MinuteClinic walk-in care, and retail products spanning over-the-counter medications, personal care items, and convenience groceries.

CVS Health continues to evolve its model into an integrated healthcare delivery platform, combining traditional pharmacy with urgent care, insurance services, and virtual health infrastructure. These innovations enhance the company’s role as a local healthcare hub and increase its long-term presence in community-based locations such as McKinney.

Lease Structure – Absolute Triple-Net

The CVS in McKinney is subject to an absolute triple-net lease, meaning the tenant is fully responsible for all expenses associated with the property. This includes real estate taxes, insurance, building maintenance, repairs, and capital expenditures including roof and structure.

For the investor, this structure offers pure passive ownership, with no landlord obligations. The lease features a long base term and options for renewal, along with fixed rental escalations that provide income growth over time. This investment is well suited for buyers seeking 1031 exchange solutions, retirement income, or low-maintenance portfolio diversification.

McKinney Market Overview – DFW Metroplex

McKinney is one of the fastest-growing cities in the Dallas–Fort Worth area and is located approximately 30 miles north of downtown Dallas. The city has transformed into a thriving suburban hub, supported by strong job creation, master-planned residential communities, and top-ranked schools. McKinney frequently ranks among the best places to live in Texas due to its family-friendly environment, robust local economy, and infrastructure investment.

The DFW metroplex is the fourth-largest metropolitan area in the United States and continues to lead the country in business relocations, job growth, and population inflow. McKinney benefits directly from this macroeconomic trend, with increased residential development, retail demand, and corporate migration to North Texas.

Demographics and Economic Drivers

McKinney exhibits strong demographic characteristics that support essential retail and pharmacy demand. Key data points include:

• High median household income levels exceeding national averages
• Educated workforce with a large concentration of professionals and dual-income families
• Rapid population growth supported by new construction and real estate development
• High homeownership and low rental vacancy rates
• Access to regional employment centers including Plano, Frisco, and North Dallas

These dynamics create a consistent and resilient consumer base for healthcare and convenience retail tenants like CVS. The city’s infrastructure supports strong mobility, daily traffic, and visibility, all of which contribute to tenant performance and operational success.

Retail Location and Site Attributes

The CVS site in McKinney is well-positioned on a high-traffic retail corridor with excellent ingress and egress. It is strategically located near schools, residential neighborhoods, medical offices, and shopping centers, creating consistent, high-frequency consumer activity.

CVS stores are typically located on signalized intersections or hard corners, reinforcing visibility and ease of access. This particular location benefits from co-tenancy and complementary traffic generators that help drive customer visits throughout the week.

Tenant Creditworthiness

CVS Health is a publicly traded company and one of the most secure credit tenants in the retail sector. With an investment-grade credit rating, a national footprint, and annual revenues in the hundreds of billions, CVS represents a low-risk, institutional-quality net lease tenant. Its strong balance sheet, commitment to long-term leases, and position as a healthcare necessity tenant enhance its attractiveness for both institutional and private investors.

CVS has consistently renewed leases across its national footprint, signaling its long-term commitment to its physical retail presence. The McKinney location benefits from this long-term corporate strategy, adding to the investment’s stability and appeal.

Key Investment Highlights

• Absolute NNN lease with no landlord obligations
• Corporate guarantee from CVS Health, a Fortune 500 and investment-grade tenant
• Located in McKinney, one of the most desirable and fastest-growing cities in the DFW metro area
• High-income, highly educated demographics with strong population growth
• Strategic site location with excellent traffic visibility and access
• Essential service retail combining pharmacy, walk-in care, and convenience retail
• Long lease term with structured rental escalations for income growth
• Ideal for 1031 exchange investors and passive income buyers
• Recession-resistant tenant and service model

Conclusion

The CVS Pharmacy in McKinney, TX represents a premier single-tenant net lease investment offering secure, long-term cash flow, corporate tenancy, and exposure to one of the strongest suburban growth markets in Texas. With an absolute NNN lease, a reliable healthcare retail tenant, and no landlord responsibilities, this asset aligns well with the objectives of private capital, family offices, and institutions seeking low-risk, income-producing real estate in a top-tier location.