On King Drive, a closed Walgreens is still very much in charge. Thanks to a long-term lease and restrictive covenants, the shuttered store is blocking any new pharmacy from opening in its old spot, and neighbors say they are already feeling it in their daily routines.
The landlord for the building says the lease language effectively gives Walgreens veto power over who can operate a pharmacy there. So even though the lights are off and the doors are closed, another chain or a neighborhood drugstore cannot simply step in without Walgreens signing off. Residents and city officials worry that the fine print could keep the property underused for years while people lose easy access to prescriptions and basic groceries.
According to the Milwaukee Journal Sentinel, leases filed with the Milwaukee County Register of Deeds show Walgreens added clauses to multiple local store contracts that limit how those properties can be used after a closure. The paper reviewed six leases and found language that can block other pharmacies and, in some cases, even tries to restrict bowling alleys, movie theaters and children's play facilities at former store sites.
King Drive Site, Corporate Grip
The King Drive store at 2826 N. Martin Luther King Jr. Dr. closed in 2024. Urban Milwaukee reports the 15,551-square-foot property is owned by a California-based investment group tied to Madison Partners and is assessed at about $2.79 million, figures that shape how it is being pitched to potential new users.
Property owner Bob Safai told reporters his current lease with Walgreens runs through 2034 and includes five-year renewal options that could extend the chain's control of the site all the way to 2084. He said Walgreens is still paying rent, and that continued payment, under the lease, blocks another pharmacy from moving in. Safai said he would welcome a new pharmacy tenant if Walgreens agreed to release its rights. The Milwaukee Journal Sentinel reports Walgreens did not respond to questions about the landlord's account.
City Hunts For Policy Fixes
City officials, watching pharmacy counters disappear from several neighborhoods, have started looking for ways to push back. The Common Council passed a resolution instructing the Department of City Development and the Milwaukee Health Department to come up with strategies to attract and keep full-service grocery stores and pharmacies. Those agencies are expected to report back to the council this summer. City records show the measure was sponsored by Ald. Milele Coggs and several colleagues.
Neighbors say the closures are already reshaping basic errands, from where they grab a gallon of milk to where they refill blood pressure meds. Coverage of other recent Walgreens shutdowns, including a midtown North Avenue store scheduled to close in June, has documented customers shifting prescriptions to other chains or depending on delivery services that can be a headache for people without cars. Safety fears shut down a midtown Walgreens, and local outlets have tracked the scramble in transit-dependent neighborhoods.
Legal Knots, Redevelopment Roadblocks
Long net leases and recorded use restrictions can act like a lock on a darkened storefront. Even when a landlord wants to bring in a new operator, a former tenant's recorded rights and long list of renewal options can scare off prospects or force drawn-out negotiations and buyouts. All of that raises the cost and complexity of turning a former pharmacy into something else, whether that is a grocery, a community hub or an independent drugstore trying to fill the gap.
Walgreens' retreat in Milwaukee is part of a broader national downsizing. The company has outlined a multi-year plan to cut its store count, a move that analysts say could deepen pharmacy deserts in neighborhoods hit by multiple closures. Axios has followed the national strategy, and Milwaukee officials say they plan to press development and health leaders for specific options when those departments report back later this summer. In the meantime, neighbors, landlords and aldermen will be watching to see whether Walgreens agrees to transfer or unwind its stake in the King Drive lease so a new pharmacy can finally flip the sign back to "open."
