How to Navigate Transition: The Dark Walgreens in Houston, TX
The property consists of a 13,552-square-foot Walgreens in Houston, TX. Originally built as a build-to-suit, the asset served as a long-term investment for a private client who acquired it in 2014 through a 1031 Exchange. Challenges: Vacancy and Market Shift After 21 years of occupancy, Walgreens vacated the build-to-suit property in late 2024, creating significant challenges for the private client. Walgreens had been paying $25/SF, while current market rents for sublease ranged from $14–$17/SF, according to CoStar Analytics. Following the vacancy, the client received an unsolicited off-market offer through another broker. In response, the property was exclusively brought to market by Matthews™ at a competitive price. The assignment required identifying a buyer willing to assume the risks associated with Walgreens’ recent transition to private ownership, which ended its 98-year run as a publicly traded company on the New York Stock Exchange. After conducting a thorough market analysis and evaluating the current retail-pharmacy climate, the Matthews™ agents presented a pricing strategy that the current market value of the asset as well as our detailed strategy of how we planned to sell it. This realistic and data-driven approach positioned the asset effectively for disposition in a challenging market. Strategy: Approach & Execution The Matthews™ agents have built an extensive database of groups actively pursuing drugstore properties—whether operated, dark, or vacant. By leveraging this network, they secured a contract within two weeks of listing and successfully closed with the first qualified buyer following a thorough vetting process. Through a shared platform, the agents maintained full visibility into every buyer relationship, enabling efficient alignment of assets with the right buyers. The digital process was comprised of targeted emails to tenant contacts throughout the country. In contrast, the agents conducted strategic cold calling to local operators in Davidson and Rutherford County, focusing on businesses that would benefit from the location’s access to labor and logistical convenience. The use of modern-day tech marketing to create nationwide exposure, paired with a “boots on the ground” approach ensured that no stone was left unturned with prospective tenants in the marketplace. Outcome The sale was successfully completed in late August 2025, closing at a price nearly 20% higher than the unsolicited offer initially presented to ownership. For the seller, this meant achieving their goal of exiting the retail-pharmacy market while preserving equity. For the buyer, it delivered an attractive yield in a market with compressed opportunities. This outcome was made possible by harnessing Matthews™’ national platform, particularly its internal buyer database and targeted marketing campaigns. These resources provided unmatched visibility into active buyer relationships and enabled efficient asset-to-buyer matching. Through strategic positioning, data-driven analysis, and a resourceful execution process, the agents delivered a true win-win transaction in a challenging market environment.
Jesus Melo
Associate