Grocery-anchored properties are attracting a lot of attention these days despite continued struggles for brick-and-mortar retail at large. Strong competition is leading to multiple offers and rising prices. So, what’s the big draw?
Resilient to COVID-19
Grocery-anchored centers have proven to be more stable than other types of retail centers. This was true before the pandemic, and it’s become even more apparent of late. Put simply, consumers can’t forgo food, and ordering takeout every day isn’t a feasible option for most. What’s more, in-person grocery shopping continues to draw shoppers looking for a comfortable routine and control over the selection of perishable items.
Beyond just being a solid investment, grocery-anchored retail is also a fairly affordable option compared to other desirable commercial real estate sectors. Top properties like warehouses and life-science labs have been commanding unprecedented prices for months. Combine the more affordable prices of grocery-anchored retail centers with their strong pandemic performance and continued low interest rates, and it’s easy to see why buyers are feeling motivated.