By Amy Wolff Sorter | March 27, 2025 | As published by Connect CRE
Once upon a time, grocery, quick service restaurants (QSR) and beauty retailers were considered on the edge of being obsolete. Many things were available online, including lipstick, eyeshadow and perfume. Furthermore, delivery services became available to bring cooked and uncooked food to folks at home.
Then, a funny thing happened after the COVID-19 shutdowns. Consumers wanted a dollop of experience with their retail experience. Bricks-and-mortar became popular once again.
“We are seeing an increased focus on experiential retail that offers personalized services,” according to Richard Rizika, partner and co-founder of Beta Agency. “Retailers are placing more emphasis on stores to create experiences that are more challenging to provide online.”
However, Rizika and other retail experts tell Connect CRE that while demand has been robust, supply not so much.
Does Size Matter?
One question that comes to mind is what the grocery, beauty and QSR tenants are looking for in their space. According to Stephanie Skrbin, it depends.
…Then there are the grocers. Sigal pointed out that grocery chains cover a range of square feet, with Trader Joe’s seeking an average of 12,500 square feet, Sprouts and Whole Foods looking for 25,000 to 30,000 square feet and traditional markets interested in 75,000 square feet.
Chris Premac added that discount grocers are targeting former large retail pharmacy spaces, like former Rite-Aid locations. “They can take advantage of the size and prime corner locations,” observed Premac, who is Coreland Companies’ Vice President.
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