While family-run chemists remain key retailers in suburban strips, the arrival of the larger-scale businesses that offer not just prescriptions but higher-margin cosmetics, a wide range of discounted vitamins and gifts has created competition for space and revenue, with a focus on shopping centres.

The smaller chemists have been hit by the changes to the Pharmaceutical Benefits Scheme, to rein in the government costs, which has led, at the property end, to the closure of smaller stores and the rise of the big-box discount formats.

According ro research house IBIS World, while the traditional pharmacy once derived as much as 85 per cent of its revenue from dispensary sales "this could potentially fall to as little as 50 per cent over the next five years".

Priceline and Chemist Warehouse are some of the larger players in the sector that are in the market with expansion mandates.

Chemist Warehouse, the family-run business that is part of the Home Consortium, which itself struck an $830 million deal with Woolworths to take over its big-box Masters portfolio in February, is one on the march across the country.

CBRE recently secured a five-year lease for Chemist Warehouse at 299 Elizabeth Street, Sydney, and a 10-year lease at 614-626 George Street for a 232 square-metre store.

CBRE's Leif Olson and James Beerworth worked closely with Chemist Warehouse on its Elizabeth Street store.

Mr Olson, CBRE's head of retail leasing in Australia, said Chemist Warehouse's "quick to market, streamlined and efficient approach to rolling out stores allowed the company to snap up key locations."

"We have noticed pharmaceutical chains are aggressively fighting for sites as they look to penetrate prime locations throughout CBD and suburban markets," Mr Olson said.

"An important objective of Chemist Warehouse is to have a volume of stores across key territories - which requires a quick and efficient approach to securing prime retail space.

"CBRE identified an area in the Sydney CBD which met Chemist Warehouse's requisites in terms of store footprint and exposure. The location was secured within a short period of time due to the nature of the market and speediness of the tenant."

CBRE's retail leasing director in Melbourne, Zelman Ainsworth, said pharmacies play a "critical part in any retail mix, in any precinct". Chemist Warehouse has stores across the Melbourne CBD and suburbs.

Chemist Warehouse's national property director, John Pamouktsis, said the group was "always looking for sites, but would do so when the critical parameters were met".

Mr Beerworth said the consumer demand for "convenience chemists" has meant numerous new stores are in the pipeline.

"More consumers are welcoming the idea of the 'convenience chemist', as the business model offers a retail experience outside of what is usually expected from 9-5 pharmacies," Mr Beerworth said.

"Chemist Warehouse has become the first choice due to its longer trading hours, easily-accessible and convenient locations and diverse offering of prescriptions, beauty, fragrance, household items, vitamins and supplements.

"The company has become a category disruptor because of its price-driven approach to retailing. Savings acquired from minimal store fit-outs and operating costs are passed on to the consumer through discounts and loyalty programs and this has become a key point of difference for the brand and customers."