Grocery-Anchored Retail Poised for Expansion
Publix is in an expansion mode.(They have hit a critical mass of orange juice and need more space.)Recently a JV of Fort Lauderdale-based Stiles and Charlotte-based based Levine Properties broke ground for a Publix-anchored retail property in the grocery companys latest market, greater Charlotte.
Stiles SVP Scott MacLaren tells us that major metros with growing populations like Charlotte will continue to be a target for strong national and regional grocery chains looking to increase footprint and sales. Even with established competitors already in-place, experienced grocery operators with economies of scale will be willing to compete head-to-head based not only on price, but also quality, service, cleanliness, and prepared food offerings, he notes. (New reality show idea: Grocery Wars!)
Lakeland-based Publixs first store in greater Charlotte, and in fact in North Carolina, will open in early 2014. Major grocery anchors are regarded as high credit and a stable draw for neighborhood center tenants, Scott says. As a result, grocery-anchored neighborhood centers are a favored real estate asset class right now, financeable for experienced developers, and highly sought after by institutional investors, he explains.
