Walgreens is the stereotypical net lease investment as they exemplify quality in all three key characteristics: Credit, Real Estate, and Lease Terms. As the leader in the retail drug store, they boast the highest corporate credit rating by both Standard and Poor's and Moody's. One key benefit to their strong rating is that even in this debt starved market, Walgreen's credit rating qualifies their net leased locations for Credit Tenant Lease (CTL) financing, which can run as high as 97% loan-to-value creating a larger qualified buyers pool.

On the real estate side of things, Walgreens demands premier hard corner locations greater than 1.00 acre. Generally, sites are 1.15 - 1.75 acres to fit their store prototypes of 14,820 SF, although units can range from 10,800 SF - 15,000 SF. To compete with rival CVS, Walgreens has generally been willing to pay premier rental rates to secure prime sites with a primary lease term of 25 years. The most significant lease variation from Walgreens of late has been the difference in their renewal options, previously requiring eight to ten renewal options of five years in length; they recently signed a number of leases that were 75 years in length, however after the 25th year Walgreens has an annual cancelation option, essentially creating 50 1-year renewal options. This small variation created significant concern for investors because at the end of the initial 25-year lease term, these assets will not be financeable.