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Grocery-Anchored Center

A multi-tenant retail center anchored by a grocery store on a long-dated lease, with inline tenants (typically restaurants, services, small specialty retail) surrounding the anchor. Grocery-anchored centers have historically been the most defensive subcategory of retail real estate because grocery is a weekly-trip purchase with very high frequency, immune to ecommerce in a way that apparel, electronics, and most general merchandise are not. Cap rates for grocery-anchored centers typically trade meaningfully below other retail subcategories reflecting the defensive profile.

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Related terms

Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management

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