Market Data
Grocery NNN sector
local_grocery_store

Grocery NNN

Grocery-anchored centers and single-tenant grocers. Essential retail with long leases.

Market Overview

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Grocery net lease covers two related properties.

One is a freestanding store leased to a grocer. The other is a multi-tenant center where the grocer is the anchor and smaller shops fill the rest of the building. Shoppers come for food, so the real estate is usually on a signalized corner or a primary retail road with parking in front. Leases are often long and can be triple net, modified gross, or a ground lease under a store the grocer built. The anchor lease is the document that matters: who the tenant is, who guarantees it, how many years remain, and whether rent increases are fixed or optional. A center can look stable and still depend on one lease.

Latest grocery briefs

Sprouts-Anchored Retail Sells to California Gold DevelopmentSprouts-Anchored Retail Sells to California Gold DevelopmentHanley Investment Group Real Estate Advisors arranged the $9.3-million sale of a Sprouts‑anchored retail property, which includes a 21,000‑square‑foot junior box lease‑up opportunity.Orion Buys Food Lion-Anchored Shopping Center in Boone, North Carolina for $26.1MOrion Buys Food Lion-Anchored Shopping Center in Boone, North Carolina for $26.1MBOONE, N.C. — Miami-based Orion Real Estate Group has acquired Watauga Village, an 88,800-square-foot neighborhood shopping center located in Boone, a city in western North Carolina and home of Appalachian State University.Westwood Financial Acquires Grocery-Anchored Huntington Beach CenterWestwood Financial Acquires Grocery-Anchored Huntington Beach CenterWestwood Financial has acquired Peninsula Marketplace, a 95,416-square-foot, Ralphs-anchored shopping center in Huntington Beach, for an undisclosed amount The property is 99% leased.TSCG Brokers $8.4M Sale of Publix-Anchored Shopping Center in Fort Walton Beach, FloridaTSCG Brokers $8.4M Sale of Publix-Anchored Shopping Center in Fort Walton Beach, FloridaFORT WALTON BEACH, FLA. — TSCG has brokered the $8.4 million sale of The Shoppes at Paradise Pointe, a Publix-anchored shopping center located at U.S. Highway 98 and Perry Avenue SE in Fort Walton Beach.Brixmor, Everview to Acquire Slate Grocery REIT for $2.34 BillionBrixmor, Everview to Acquire Slate Grocery REIT for $2.34 BillionBrixmor Property Group Inc. and Everview Partners said Monday they have entered into definitive agreements to acquire Toronto-based Slate Grocery REIT in a transaction valued at $2.34 billion.Retail Veteran Launches Grocery-Anchored Fund With $200M In Seed FundingRetail Veteran Launches Grocery-Anchored Fund With $200M In Seed FundingHyperion Realty launches a fund with $200M from GCM Grosvenor, aiming for $1B worth of assets owned with additional investment.Happier Grocery to Open Second NYC Location on the Upper East SideHappier Grocery to Open Second NYC Location on the Upper East SideA healthy grocery retailer is opening its second New York City location on Manhattan’s Upper East Side.Kite Realty Trust Trades Grocery-Anchored White Plains Retail for $50MKite Realty Trust Trades Grocery-Anchored White Plains Retail for $50MJLL Capital Markets secured the $50-million sale of City Center, a 361,948-square-foot, grocery-anchored retail property located in White Plains. on behalf of seller Kite Realty Trust.Atlantic Capital Brokers $48.2M Sale of Publix-Anchored Shopping Center in Columbus, GeorgiaAtlantic Capital Brokers $48.2M Sale of Publix-Anchored Shopping Center in Columbus, GeorgiaCOLUMBUS, GA. — Atlantic Capital Partners has brokered the $48.2 million sale of Cross Country Plaza, a 304,735-square-foot shopping center located in Columbus. Anchored by Publix since 2011, the property was 95 percent leased at the time of sale to tenants including T.J.TCC Puts Wrap on Phoenix Sprouts Market, HQTCC Puts Wrap on Phoenix Sprouts Market, HQTrammell Crow Company completed a new development anchored by Sprouts Farmers Market in Phoenix.ALDI Reveals Westward ExpansionALDI Reveals Westward ExpansionAs ALDI enters its 50th year in the United States, the low-price grocer is doubling down on its nationwide expansion, announcing plans to open more than 180 stores by the end of 2026.Grocery-Anchored Queens Retail Secures $32M FinancingGrocery-Anchored Queens Retail Secures $32M FinancingNorthmarq’s New York Metro Debt + Equity team, led by Robert Delitsky and Charles Cotsalas, arranged $32 million in financing for Springnex Plaza, a 96,028-square-foot retail property located in the Springfield Gardens neighborhood of Queens.H-E-B Scores Sizable Tax Break for SA Warehouse ExpansionH-E-B Scores Sizable Tax Break for SA Warehouse ExpansionH-E-B is planning a $635 million expansion to its Super Regional Center near Foster Road and East Houston Street in Bexar County.Representative photo of a generic grocery-anchored shopping center with a supermarket facade, blank sign, full parking lotRepresentative imageTrader Joe’s to Open New Grocery Store in Reading, MassachusettsREADING, MASS. — Trader Joe’s will open a new grocery store in Reading, a northern suburb of Boston, later this year. The square footage was not disclosed.Northmarq Arranges $50.8M Loan for Grocery-Anchored Retail Center in Metro D.C.Northmarq Arranges $50.8M Loan for Grocery-Anchored Retail Center in Metro D.C.POTOMAC, MD. — Northmarq has arranged a $50.8 million permanent, fixed-rate loan for the refinancing of Potomac Place Shopping Center, an 80,040-square-foot retail center located in Potomac, roughly 15 miles northwest of downtown Washington, D.C.Kroger Out, Sprouts In at Houston’s Hedwig VillageKroger Out, Sprouts In at Houston’s Hedwig VillageA former Kroger location in Hedwig Village is being transformed into a Sprouts Farmers Market. The store is currently scheduled to open in 2027.Agora Realty Completes Construction of 90,750 SF Grocery-Anchored Retail Center in North Las VegasAgora Realty Completes Construction of 90,750 SF Grocery-Anchored Retail Center in North Las VegasLAS VEGAS — Agora Realty has completed construction of Hylo Park South, a 90,750-square-foot grocery-anchored retail center located in North Las Vegas.SRS Real Estate Partners Completes Sale of Grocery Property in MichiganSRS Real Estate Partners Completes Sale of Grocery Property in MichiganSRS Real Estate Partners has completed the $6.92 million sale of a single-tenant grocery property located at 2103 Parkview Avenue in Kalamazoo, Michigan.Kroger Taking Over Most of Shuttered Dunwoody Walmart StoreKroger Taking Over Most of Shuttered Dunwoody Walmart StoreA Kroger Marketplace is taking over a former Walmart store near Perimeter Mall in Dunwoody.Paragon Acquires Grocery-Anchored Shopping Center from Long-Term OwnersParagon Acquires Grocery-Anchored Shopping Center from Long-Term OwnersParagon Commercial Group has completed the off-market acquisition of a grocery-anchored shopping center in the Tujunga neighborhood of Los Angeles.Clarion Partners Acquires Grocery-Anchored Fairfield County RetailClarion Partners Acquires Grocery-Anchored Fairfield County RetailFranklin Templeton and its real estate investment manager Clarion Partners announced Clarion Partners Real Estate Income Fund Inc.’s acquisition of Main Avenue Shopping Plaza, a 156,568-square-foot grocery-anchored community shopping center in Norwalk, CT.IPA Brokers $23.1M Sale of Publix-Anchored Shopping Center in Alexander City, AlabamaIPA Brokers $23.1M Sale of Publix-Anchored Shopping Center in Alexander City, AlabamaALEXANDER CITY, ALA. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the $23.1 million sale of The Gateway at Lake Martin, a grocery-anchored shopping center in east-central Alabama.Representative photo: Produce section inside a generic supermarket, softly blurred shoppersRepresentative imageJLL Negotiates $8.5M Sale of Grocery Building in Beverly, MassachusettsBEVERLY, MASS. — JLL has negotiated the $8.5 million sale of a 60,666-square-foot grocery building in Beverly, a northeastern suburb of Boston, that is fully leased to regional operator Stop & Shop.Publix-Anchored Jax Retail Center Changes HandsPublix-Anchored Jax Retail Center Changes HandsTSCG brokered the sale of The Plaza at Normandy, a newly developed, Publix-anchored shopping center in Jacksonville, Florida, for $20.6 million.

See all grocery news →

Market Outlook

trending_flatCap Rate Direction
Follows the anchor lease
trending_flatNeutral
descriptionRent Growth
Fixed steps or CPI
trending_flatNeutral
storefrontTenant Demand
Necessity retail
trending_upPositive
local_shippingE-Commerce Risk
Lower than apparel
trending_upPositive

Food retail has held up better than apparel because people still buy groceries in a store. Public grocers file with the SEC. Regional and private grocers need a guarantee, store-level sales if the seller will share them, and a look at how many other stores the operator has nearby. When the grocer leaves, the box is large and the re-lease is a different project from replacing a small shop. Underwrite the remaining term and the rent against what a replacement grocer would pay.

Key Investor Tips

  1. 1Read the anchor lease before the shop leases. The center's income follows the grocer.
  2. 2Ask who the tenant legal entity is and whether a parent guarantee exists.
  3. 3Treat co-tenancy clauses as a cash-flow issue. Some shop leases allow rent relief if the grocer goes dark.
  4. 4A single-tenant retail cap print is a different product from a grocery box or a grocery-anchored center.
  5. 5Parking, access, and the loading dock matter more here than they do for a small pad store.
  6. 6Ask for store-level sales; if the seller won't share them, price that risk in.
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infoDisclaimer

Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Statistics may be estimated from publicly available sources and should be verified with primary data providers before use in investment decisions. Tenant information is sourced from public filings and may not reflect current conditions. Past performance does not guarantee future results.

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