Leasing at Grocery-Anchored Centers Continues to Soar

Grocers posted high sales growth in 2020 as households were in lockdown and dining out became impossible for many, according to JLL’s latest report. Reduced spending at restaurants provided outsized gains at grocery stores that will be hard to outpace in the coming years.

Moreover, stay-at-home orders and public health concerns caused pick-up and delivery to soar. That demand has accelerated grocers’ plans for e-commerce adoption.

“In Orange County, most traditional grocers, Ralphs, Vons, Albertsons, slowed or halted store expansions while capital was funneled to developing and improving online ordering platforms,” says Justin McMahon, JLL vice president in Orange County. “Additionally, upscale/specialty grocers and ethnic grocers continued expansion in Orange County, albeit cautiously as evidenced by recent announcements by Whole Foods, Trader Joe’s, Sprouts, H Mart and others. Leasing demand at grocery-anchored shopping centers in Orange County remains high due to the traffic created, well outpacing non-grocery anchored properties.”