What’s Happening with Rite Aid Stores in LA

Rite Aid filed for bankruptcy and is closing hundreds of stores, more than 1,200 nationwide, and dozens in LA County alone. The company’s restructuring is ongoing, and earlier this year, Rite Aid sought to close another 114 stores as part of its Chapter 11 filing. Many of its pharmacy assets were sold to competitors such as CVS and Walgreens (Reuters, Healthcare Finance News).

But instead of sitting empty, many of these former drugstores are being turned into new, adaptive spaces that reflect how retail is changing. In high-traffic corridors across Los Angeles County, landlords and developers are moving quickly to repurpose these boxes for tenants that feel essential, local, and future-proof.

A Second Life for Former Pharmacies

Healthcare operators have been leading the charge. The retail-to-medical conversion trend has been accelerating nationally, with urgent care centers, dental clinics, and wellness providers gravitating toward existing retail sites for their visibility and ample parking (NAIOP). These users also tend to sign longer leases, offering landlords more stability than traditional retailers (Investing in CRE).

Other adaptive uses are emerging, too. Energy companies are taking advantage of Rite Aid’s prominent corner parcels to install EV charging stations. Meanwhile, grocery chains and delivery platforms are exploring micro-fulfillment warehouses that support same-day delivery. A few sites have even been envisioned as hybrid wellness centers combining pharmacy services, telehealth kiosks, and nutrition hubs.

A Shifting Retail Landscape

The Los Angeles County retail market remains soft, but repurposing activity is helping offset rising vacancy. In Q2 2024, LA County’s retail vacancy rate was about 5.7%, rising to over 6% by early 2025, while downtown LA submarkets saw retail vacancies climb by 250 basis points to roughly 9.5% (Matthews Real Estate Investment Services, GlobeSt).

Despite the slowdown in traditional retail demand, properties in prime corridors continue to attract interest from medical, EV, and logistics tenants. Many landlords view these conversions as an opportunity to create long-term value in evolving neighborhoods rather than chase short-term retail leases.

Regulatory and Lease Hurdles

Repurposing former drugstores isn’t always simple. Medical and industrial uses often require zoning changes or conditional-use permits, and local agencies across LA County are working to expedite the approval process to avoid prolonged vacancies (Los Angeles Times).

Another challenge is that many Rite Aid locations were leased rather than owned, meaning property owners must navigate complex issues such as subleasing rights, early termination clauses, and title cleanup before redevelopment can begin. These legal nuances can slow project timelines even when there’s strong tenant demand.

Local Impacts

Not every community is feeling these closures equally. In some lower-income areas, the loss of Rite Aid has created gaps in pharmacy access, prompting developers and city officials to encourage healthcare-focused reuse wherever possible.

Several examples are already taking shape:

-A Glassell Park location is being evaluated for conversion into a wellness and telehealth center.

-A Long Beach site is under review for EV charger installation.

-A La Puente property is being studied as a logistics hub for grocery delivery.

These projects underscore a wider trend in retail real estate: as traditional chains downsize, landlords are rethinking what kind of tenants their communities actually need.

The Bigger Picture

Rite Aid’s downsizing mirrors similar moves from CVS and Walgreens, both of which are trimming their store counts and pivoting toward healthcare integration (LightBox). The success stories tend to come from landlords who can adapt quickly, match tenant demand, navigate zoning efficiently, and secure leases that bring consistent value to their neighborhoods.

Interested in Retail Redevelopment Opportunities?

If you’re exploring ways to reposition or lease a former drugstore or retail property in Los Angeles County, our team can help identify the right tenant mix and strategy for your space.

Contact our Leasing Team to discuss your property goals or learn more about emerging retail trends across Southern California.