CVS Pharmacy

CVS Pharmacy – Prescott, AZ (Greater Phoenix Trade Area)

This CVS Pharmacy in Prescott, Arizona is a rare opportunity to acquire a single-tenant, absolute triple-net (NNN) investment leased to CVS Health, a Fortune 500 and investment-grade tenant. Located in the heart of one of Northern Arizona’s most dynamic and demographically strong markets, this property offers investors long-term income security, zero landlord responsibilities, and corporate-backed stability in a strategic growth corridor tied to the broader Phoenix metro area.

Tenant Overview – CVS Health

CVS Pharmacy is the retail pharmacy arm of CVS Health (NYSE: CVS), the largest pharmacy chain in the United States and a leader in retail healthcare delivery. With more than 9,000 locations nationwide, CVS provides essential services including prescription medications, vaccinations, over-the-counter health products, walk-in MinuteClinic services, and everyday retail convenience items.

CVS Health continues to evolve beyond traditional pharmacy operations, incorporating telehealth, primary care, and insurance integration into its business model. This makes each location a central part of local healthcare infrastructure. With a strong lease retention record, essential services, and national name recognition, CVS remains one of the most desirable tenants in the net lease market.

Lease Structure – Absolute NNN

The Prescott CVS location is under an absolute triple-net lease, which requires the tenant to be fully responsible for all property-related expenses including taxes, insurance, maintenance, and capital repairs. The lease includes scheduled rental increases and multiple renewal options, providing a predictable long-term income stream.

For the investor, this lease structure offers:

• 100% passive income with no management responsibilities
• Fixed rental escalations to hedge inflation
• Long-term stability backed by a corporate guarantee
• Ideal 1031 exchange replacement property

This format is well-suited for institutional, family office, or private investors seeking dependable cash flow with minimal oversight and a long investment horizon.

Market Overview – Prescott, Arizona

Prescott is a high-growth city located approximately 100 miles north of Phoenix and is a central part of Arizona’s expanding central-northern corridor. Often referred to as “Everybody’s Hometown,” Prescott combines a strong retirement population with growing numbers of young families, remote workers, and second-home owners. The city is the economic and medical hub of Yavapai County and continues to draw new residents due to its mild climate, scenic landscape, and overall affordability compared to the Phoenix metro.

Prescott also serves as a critical secondary trade area to the Greater Phoenix market. As growth continues to radiate outward from Phoenix, communities like Prescott have experienced increased demand for healthcare services, consumer goods, and core retail—making them strong locations for national tenants like CVS.

Demographic and Economic Drivers

Prescott is supported by compelling demographic trends and economic anchors that align well with CVS’s service model:

• Steady population growth among retirees and families
• High rates of homeownership and rising property values
• Median household incomes above national averages
• A strong healthcare sector anchored by Yavapai Regional Medical Center and local practices
• Proximity to Prescott Valley, Chino Valley, and other growing municipalities
• Regional draw for tourism, education (Prescott College and Embry-Riddle Aeronautical University), and seasonal population surges

CVS stores in suburban and regional hubs like Prescott benefit from stable local traffic, dependable pharmacy demand, and a strong need for accessible healthcare services.

Retail Corridor and Site Visibility

This CVS location sits along a highly trafficked commercial corridor in Prescott, with excellent visibility, signage, and access. The surrounding area includes grocery stores, national retailers, medical offices, schools, and residential neighborhoods. These site fundamentals drive consistent customer volume and reinforce the long-term viability of the tenant’s operations.

Site attributes include:

• Hard-corner or signalized intersection location
• Ample on-site parking and drive-thru access
• High daily vehicle counts and strong visibility from surrounding roadways
• Nearby co-tenants including grocery, QSR, and community-focused service providers

As a result, the property functions as both a neighborhood essential service provider and a regional healthcare destination, strengthening its investment profile.

CVS Credit Strength and Lease Security

CVS Health is a best-in-class tenant known for its strong financials, high store retention rates, and commitment to long-term lease performance. With over $300 billion in annual revenue and solid credit ratings from major agencies, CVS offers a secure and low-risk investment experience.

Key credit and lease highlights:

• Investment-grade credit (BBB+ or better)
• Fortune 500 status and national brand recognition
• Recession-resistant, essential business model
• Long-term lease with corporate guarantee
• Proven operating history and high renewal probability

This level of credit backing provides investors with peace of mind, consistent yield, and security even in times of economic volatility.

Investment Highlights

• Absolute NNN lease with no landlord responsibilities
• CVS Health corporate guarantee – Fortune 500, investment-grade tenant
• Located in Prescott, AZ, a regional hub with strong demographics and healthcare demand
• Strategic growth location tied to the expanding Greater Phoenix trade area
• Excellent site fundamentals with high visibility and drive-thru access
• Passive income with scheduled rent increases and lease options
• Ideal 1031 exchange or long-term hold asset
• Strong alignment with aging population and healthcare demand trends
• Recession-resistant asset in a resilient and growing market

Conclusion

The CVS Pharmacy in Prescott, AZ offers a truly passive, high-quality net lease investment with long-term security in one of Arizona’s most desirable non-urban markets. Backed by an absolute NNN lease and guaranteed by CVS Health, this property provides reliable income, essential service value, and credit tenancy in a region poised for continued growth.