As the name implies, grocery-anchored shopping centers, strip malls, or retail centers are anchored by essential utilities, aka grocery stores. The idea is to provide customers with the essentials that are necessary on a regular basis, which is food, rather than other relatively lesser required goods such as, clothing or electronics.
In terms of retail footprints, grocery chains have seen a significant rise in sales, as compared to traditional commercial real estate and shopping centers, many of which saw their sales sliced in half.
While not all grocery-anchored shopping centers are created equal, an argument can be made that a grocery-anchored retail center is more likely to succeed in the current economic climate as compared to traditional electronics and clothing-centered shopping centers and strip malls.
For those of you who are still on the fence when it comes to choosing commercial real estate, here are a few reasons why investing in more grocery-anchored shopping centers makes sense.
Curbing E-commerce
The e-Commerce genie is out of the bottle, and there are no signs of that changing any time soon. But, a grocery-anchored shopping center can, by design, ride the e-commerce wave, unlike many strip mall outlets who are dealing in non-essential items. The grocery-anchored shopping center is safe from the disruption of e-commerce mainly because it provides everyday essentials that the consumer needs rather than novelties customers can do without.
The Advantage of Location
Since strip malls and shopping centers are mostly located in densely populated areas, having a grocery-anchored shopping center can increase the customer base two-fold. The location also helps support a steady increase in rental rates and property values for investors.
More Foot Traffic
As mentioned, shopping centers and strip malls attract more customers, which means getting more feet through the door on a regular basis. This consistent flow of consumers also helps to improve sales of commercial leasing and can contribute to a better ROI.
Grocery Anchored Shopping Centers In NY, PA, FL, MD, NJ, DE
The idea for “redeveloping” the commercial real estate sector, mainly retail centers, and strip malls, is a relatively new strategy that’s driving property management companies towards focusing on grocery-anchored shopping to curb the growing number of vacancies in retail shopping centers.
As with any industry, planning to enter the grocery-anchored shopping market requires expert guidance from real estate and property management services, who have their finger on the pulse of market trends and the essentials of experimental-based retail.
Milbrook Properties is a professional property management service that provides solutions for redeveloping the shopping center.
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