From Pharmacies to Dog Parks: How Shuttered Drugstores Are Finding New Life

Oct 11, 2024 • 15 min read

In the affluent Atlanta suburb of Alpharetta, Georgia, a former Rite Aid pharmacy has been transformed into something unexpected: a combination restaurant and dog park called Off Leash. Where pharmacists once dispensed medication and shoppers browsed aisles of personal care products, dog owners now sip cocktails and enjoy appetizers while their pets play in a fenced-in park adjacent to the eatery.

"When most people see these abandoned drugstores, they usually will only ever see it as that," said Will Jordan, an associate architect at Vickers Design Group, the firm behind Off Leash's redesign. The project required significant investment and creativity, including removing portions of the building to create outdoor patio space, adding large windows, and installing an underground drainage system to handle runoff from the dog park.

This inventive repurposing reflects a broader trend across the United States and Canada, where chains like CVS, Walgreens, and Rite Aid are closing thousands of stores. Developers and investors are seizing the opportunity to convert these vacant drugstores into a variety of new uses, from plasma collection centers and thrift stores to car washes and convenience stores with gas stations.

"Location is the big draw for a lot of these buildings because they are highly prominent," said Jason Miller, chief investment officer at Grand Sakwa Properties, a firm that invests in drugstore properties. These structures are often situated at prominent, high-visibility intersections with well-planned entrances and exits for car traffic, making them attractive for redevelopment.

However, converting a former drugstore is not without challenges. At an average size of 10,000 to 15,000 square feet, these buildings can be too large for certain retailers like auto parts stores or coffee shops. Their rectangular shape also makes them awkward to subdivide for multiple tenants. Furthermore, some communities may resist certain proposed new uses due to concerns about noise, odors, or other impacts.

In Darien, Illinois, Gerber Collision and Glass planned to convert a former CVS into an automotive reconditioning facility but backed out after residents expressed concerns about potential noise and odors. Conversely, Clean Express Auto Wash successfully converted a former Rite Aid in East McKeesport, Pennsylvania, into a car wash by situating machinery inside the building to reduce noise, making it more acceptable to the community.

Healthcare providers are also finding value in these spaces. Design-build firm Stough Group has converted more than a dozen former drugstores into plasma collection centers for KedPlasma across the country. These facilities require large rooms to accommodate dozens of reclining chairs for plasma donors, making the spacious interiors of former pharmacies ideal.

The architecture firm DLR Group recently repurposed a former drugstore into a wellness center for Inland Empire Health Plan (IEHP) in Indio, California. "You want it to be easy to access for the community and you want it to be where people can see it," said Jeremy Reding, a principal with DLR Group. The high-profile location made it a good fit for IEHP, which provides fitness classes, benefits assistance, and other services to low-income community members.

Retailers of various kinds are finding opportunities as well. Savers Value Village, a thrift store chain operating in the U.S. and Canada, converted a former Rite Aid in Walnut Creek, California, into a Savers-branded thrift store in February.

The scarcity of available retail space in many markets adds to the appeal of converting these buildings. According to CoStar data, about 4.5% of the total amount of retail space in the U.S. was available for lease at the end of August, a historically low level. "That's where a conversion comes into play," said Daniel Taub, national director of the retail and net lease divisions at Marcus & Millichap. Landlords may not be able to replace a vacated drugstore tenant with another paying the same level of rent, making creative conversions a practical solution.

Some conversions involve significant modifications, such as the Now & Forever convenience store in Houston, which installed 16 gas pumps covered by a canopy in the parking lot of a former Walgreens. "The project included the installation of gas pumps, which was a considerable investment, but the location at a heavily trafficked intersection made it worthwhile," said Jason Miller of Grand Sakwa Properties.

Back in Alpharetta, Off Leash represents both the challenges and rewards of repurposing a former drugstore. Co-owner Wendy Newman saw the potential in the empty Rite Aid, especially with the adjacent empty lot that could become a dog park. Despite the additional expenses, including installing an underground drainage system as required by the city, the unique combination of restaurant and dog park has brought new life to the prominent corner.

As CVS, Walgreens, and Rite Aid continue to streamline operations, more opportunities for such creative transformations will arise. Developers and investors willing to think outside the box can not only fill gaps in the retail landscape but also provide valuable services and experiences to communities.

"These buildings are often in great locations, and with some imagination and investment, they can become something entirely new and beneficial," said Will Jordan of Vickers Design Group.

As the retail landscape evolves, the conversion of shuttered drugstores into diverse new uses demonstrates the adaptability and resilience of the real estate market, providing a boost to communities and offering developers a chance to innovate.