It's a Changing Grocery Market

Patrick Owens is a senior vice president of retail advisory services at Transwestern. He spoke to us about the changing retail real estate tenant market, how the grocery business is doing, and what to expect from RECon. The grocery sector seems volatile. How do you see that shaping up in the year to come?

Owens: It’s certainly a transitional period here for our market. We’ve got new players, such as Mariano’s, which is spurring the only new development. Walmart is coming in with its Express format in urban spaces. On the other side of that, we have the traditional market leaders here like Jewel and Dominicks, so the traditional grocers are being replaced by new owners. We’re seeing a lot of strength from local independents here that are backfilling some of those grocery spaces, and it will ease the hit that landlords are feeling filling older spaces. There will still be empty-box grocers that are going to be filled with non-traditional uses or split up. There is only so much room for so many grocers.

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on May 19, 2013