January 14, 2010

Grocery - Solid Anchors

CoStar has an interesting piece on the value of grocery store anchors today and over the past 18 months. The timing is interesting, as we continue to hear from buyers with more frequency they are seeking grocery-anchored retail centers. The article has a very good breakdown of some of the national and larger regional chains as well. The article concludes with some forecasting from a CBRE investment expert on why these centers will remain sought after assets:
In a special report released in late December by CB Richard Ellis titled, "The Upside of the Downturn: Opportunities in Commercial Property Investments," Jim Costello, principal and director of investment strategy said that there is investor demand for high-quality cash-flowing assets in the current market. He added that stable neighborhood centers anchored by grocery and drug store tenants "will experience very little of the current pain in the market" during 2010. He added that such centers up for sale will be able to hold strong on pricing, in contrast to centers on the "high-end of the market."


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