Walgreens Development Opportunity
Does anyone have any experience developing a Walgreens? I've identified an outlot of a shopping mall that I think would be perfect for one.
Nearest Walgreens is 4 miles away. Town of about 45,000 and that other Walgreens is the only one. This shopping mall is the only mall in the county, of about 200,000 people.
The lot is 1.62 acres, with great visibility, being on the corner of one of the main entrances to the mall. Four months ago, there were six outlots left to be sold. Now, this is the sole remaining one.
The lot is listed for just under $1M.
I've found articles regarding construction costs around the country, with costs ranging from $800K (in 2002), to $3M (in 2004).
Any advice/thoughts/comments would be greatly appreciated. Some questions I can think of are:
Should I use Walgreens online "New Site Submittal Form" to see if they're interested? If so, at what step should I do that? Should I get the lot under contract first?
Is there any reliable way to estimate NOI? When is the best time to sell after the Walgreens is open? Immediately, or after a seasoning period to show NOI?
I'd also appreciate any recommended books or resources to learn about the process and what to expect.
Lastly, is Walgreens still expanding? I know they just closed quite a few stores, and bought some RiteAid stores. The only Rite Aid in this town is directly across the street from the only Walgreens, so that shouldn't affect their decision. The only CVS in town is closer to the existing Walgreens, than to this new site.
