- Rite Aid’s bankruptcy is bringing over 1,200 locations to market, including more than 120 across Philadelphia and its suburbs.
- Developers are already repurposing former stores into residential units, medical offices, and entertainment venues.
- The trend highlights a broader shift in retail real estate strategy, driven by high construction costs and low national retail vacancy.
Philadelphia’s Reuse Playbook
Rite Aid’s collapse may be a blow to employees and loyal customers, but in real estate circles, it’s fueling a wave of redevelopment across the Philadelphia region. Local brokers and developers are actively reimagining the vacant stores, which often sit at prime intersections with high visibility, reports Bisnow.
“This is the most sought-after real estate for varied reasons,” said Todd Sussman, a broker with Colliers. “Someone will capitalize on the visibility, the access, and the location.”
A recent CoStar report noted that over 1,200 Rite Aid sites are up for sale across 15 states. Greater Philadelphia alone has 121 properties either on the market or soon to be available.
Residential Over Retail
At 801 S. Ninth St., OCF Realty is planning to demolish a Rite Aid and replace it with a 25-unit residential project—16 condos and nine single-family homes. Despite local demand, the project won’t include retail due to pushback from nearby residents.
“I’m thrilled … anytime I get to turn a single-story retail space with a lot of parking into some level of density,” said Ori Feibush, CEO of OCF.
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Retail Reuse And Medical Tenants
Not all properties are shifting to residential. Some, like the Rite Aid on North Broad Street, are being leased to medical providers. In South Jersey, where suburban-style Rite Aids abound, the large, boxy stores have proven attractive to budget retailers and auto parts chains, including Dollar Tree and AutoZone.
“A clear-span space like Rite Aid’s offers flexibility,” Sussman noted.
New Uses, Same Spaces
Activate, a gaming and entertainment company, is converting a former Rite Aid in Cherry Hill into a new location. According to marketing head Will Gray, vacant pharmacies make ideal sites because they offer “blank slates” in high-traffic areas.
Beyond The Storefronts
The shuttering isn’t just impacting retail storefronts. Rite Aid’s 66K SF headquarters at the Philadelphia Navy Yard is now available for lease, and its 850K SF distribution center in Burlington County is also on the market.
A Symptom Of A Larger Problem
While competitors like CVS and Walgreens might appear to benefit from Rite Aid’s exit, Sussman cautions that the entire pharmacy sector is struggling. Increased theft, online competition, and a shift in consumer shopping habits have hurt margins and led to widespread closures.
“Those stores have been largely empty for the last year and a half,” Feibush said of Rite Aid locations in Philly.
What’s Next
Expect more Rite Aid stores in the region to be snapped up and reimagined, whether as homes, healthcare offices, or entertainment venues. With retail vacancy low and construction costs high, adaptive reuse of well-located properties may be one of the few viable paths forward for urban development.
