How To Convert A Former Drugstore Into A Convenience Store And Gas Station

Former drugstore properties offer a variety of adaptive reuse and repurpose options for growing c-store chains

Rite Aid filed for bankruptcy in 2023 and then again—for the final time—in 2025.

These bankruptcies resulted in the closure of nearly all of Rite Aid’s ~2,200 drugstores over just the past three years.

During this same period Walgreens and CVS have also each closed hundreds of drugstores.

But now some of this vacant drugstore real estate has been backfilled by other tenants—or repurposed for adaptive reuse.

Including as convenience stores and gas stations.

There are roughly 152,000 convenience stores (c-stores) in the United States.

But large chains—or those that operate over 500 sites—comprise just ~20% of all U.S. c-stores.

Nearly 2/3 of all U.S. c-stores are instead operated by companies that have 10 or fewer sites.

Many of these small c-store operators seek to add new units.

But they often struggle to compete with large chains to acquire sites and fund construction and development costs.

C-store unit development is hard, costly and time consuming—sites must be found, approvals obtained, construction financed and stores built.

Plus many of the best c-store locations have already been taken.

But some c-store operators have pivoted to the adaptive reuse of other properties to develop new units.

Such as recently vacated former drugstores.

Many elements of drugstore real estate appeal to c-store operators.

Drugstores are often located on 1-2 acre parcels—generally on premier “hard corners” or signalized intersections with high traffic flow and good access.

They are typically set close to the street and feature prominent signage, a dedicated parking field and even a drive thru.

Plus drugstore properties offer some of the few infill development opportunities in hard-to-enter markets.

But while many former drugstores are good candidates for adaptive reuse into c-stores and gas stations, there are hurdles that must be overcome.

Like store size.

Most c-stores are no larger than ~5,000 square feet, or the less than 1/2 the size of a former Rite Aid or Walgreens building.

Independent operators have solved for this “excess space” issue in several different ways.

One option: demise the existing drugstore building into multiple suites and lease them out to other companies.

That is what that one independent c-store operator is doing at a former Rite Aid site in Burton, MI.

This operator plans to use ~5,000 square feet of the building as a convenience store and create three separate ~2,000 square feet suites in the rest of the building.

The space at the far east of the building will even have access to the former Rite Aid’s drive thru window.

The 1.7 acre site offered plenty of room to install gas pumps in the west portion of lot yet retain enough parking to support the new uses.

Other c-store operators have utilized the larger building size of former drugstores to offer expanded retail options to customers.

For instance, Now & Forever, a regional chain of c-stores, converted a former Houston-area Walgreens into a gas station and convenience store.

Now & Forever added a fuel canopy and 16 fuel pumps on the former Walgreens parking lot.

But instead of shrinking or modifying the Walgreens building, it converted the entire ~14,000 square former drugstore into a Now & Forever “Plus” store with the “Plus” moniker reflecting its larger size relative to its other c-stores.

Another option that some operators have explored is to include additional uses within the building.

One entrepreneur in Cleveland is attempting to rezone a vacant CVS in Cleveland for adaptive reuse as a c-store and gas station.

His plan is to include multiple uses within the ~13,000 square foot former drugstore building including a potential pizza restaurant and bank branch as well as a c-store—with gas pumps and electric vehicle chargers in the parking lot.

Even some larger companies have repurposed drugstore buildings as a c-store and gas station combo property.

Like Iowa-based supermarket chain Hy-Vee which converted its former drugstore in Marion, IA into a Hy-Vee Fast and Fresh c-store.

Hy-Vee Fast and Fresh formats operate as mini grocery stores and carry pantry and frozen foods along with fresh foods and ready-to-eat meals.

The Hy-Vee Fast and Fresh hybrid grocery/c-store generally ranges between 10,000 and 16,000 square feet—or just about the exact size of a drugstore.

So instead of demolishing the building, Hy-Vee repurposed the former drugstore and opened more quickly and at less cost.

Other large c-store chains are also acquiring former drugstore sites.

But unlike independent operators, many of these chains are acquiring sites for the underlying dirt rather than to repurpose the existing buildings.

For instance city officials in Wilmington, NC approved a rezoning and site plan to convert a vacant former drugstore site into a Circle K c-store.

Circle K does not plan to reuse the 11,000 square foot former drugstore building.

Instead, it will spend ~$5.8 MM to demolish the drugstore and construct a ~5,200 square foot store, 14 fuel pumps and green space with bicycle parking and public benches on the ~1 acre site.

Similarly, Murphy Oil USA MUSA 0.00%↑ is pursuing the acquisition a former Rite Aid property in Bay City, MI.

Murphy Oil USA plans to demolish the former Rite Aid, construct a new $3 MM building and install four rows of pump islands for its fueling station.

These drugstore-to-c-store adaptive reuse and repurpose examples are just the start of what will likely be many similar building and site conversions.

Especially given the projected growth in new c-store units and the large number of drugstore properties on the market and available for reuse.