Grocery stores were deemed an essential business and remained open during the pandemic. They also posted record sales volume. Meanwhile, many malls and other retail stores closed for months and saw plummeting sales.
That’s why more retailers want grocery stores near them to attract more foot traffic. Grocery-anchored shopping centers are drawing heightened investor interest—and higher prices, The Wall Street Journal reports.
Realizing this, BentallGreenOak, a real estate investment firm, has marketed a portfolio of 10 shopping centers in big cities like Atlanta, Chicago, Houston, and more. The price could be up to $450 million, which would be comparable to--or even more than—what the portfolio would have sold for prior to the pandemic, The Journal reports.
“Pricing is consistent as before the shutdown,” Barry Brown, senior managing director of capital markets for JLL, a commercial property services firm, told The Wall Street Journal.
E-commerce hasn’t fully bitten into the grocery sector. Consumers continue to shop in person in grocery stores, although curbside pickup options have grown in popularity.