GLOBEST.COM: Investors Strengthen Foothold in Grocery-Anchored Retail

News

By Paul Bergeron
GlobeSt.com, Publish Date: October 2021

Expect grocery store-anchored shopping centers to be on investors and developers’ lists in the coming month as value in this real estate type is soaring in many areas of the country.

Case in point is Blackstone’s new investment in a portfolio of six Publix-anchored Sunbelt region shopping centers in a two-step deal.

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The Advantages of a Grocery Anchor

Matt Hammond, senior vice president & partner, Coreland Companies, tells GlobeSt, “Investors are really targeting this grocery-anchored asset class because it’s both experiential and necessity-based. While some big boxes have been hurt by online sales, grocery-anchored retail is thriving as the key destination for markets, pharmacies, restaurants and services.

“Additionally, these centers also benefit from inline and drive-thru pad spaces. Ultimately, they offer key opportunities to upgrade a tenant mix and create value.

The Sun Belt markets, just like Southern California’s Inland Empire, remain in demand,” Hammond said.

“With a partially remote workforce, these regions offer affordable, family-sized homes, not to mention great weather. Couple that with low mortgage rates and you get a migration of young families buying first homes, and a grocery-anchored sector in high demand.