Shopping Center Business

MAY 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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Page 138 of 334

GROCERY TRENDS 134 • SHOPPING CENTER BUSINESS • May 2017 "Experience and convenience really accommodate the modern family where many households have two working mem- bers. They need that ease and quality," says Sean Sharko, a first vice president with Marcus & Millichap in Chicago. Mariano's and Whole Foods are the two chains that do p r e p a r e d foods best, a c c o r d i n g to Sharko. M a r i a n o ' s p u r c h a s e by Kroger was big news in the M i d w e s t because it e n h a n c e d the credit behind the operator. For the most part, M a r i a n o ' s has dominated the grocery development in Chicago and the suburbs, according to Austin Weisenbeck, also a first vice presi- dent with Marcus & Millichap. This dom- ination stems from its willingness to pay the higher rents associated with construc- tion and land costs for prime locations. Jewel-Osco stores, for example, operate with significantly lower rents and older buildings. "The days of someone building a free- standing grocery store out in the middle of a cornfield are finished. What I do think you'll see is the repositioning of stores," says Michael Havdala, senior vice presi- dent with HSA Commercial. MIXED-USE, SMALL-SCALE Also impacting the grocery market is the migration to downtown office loca- tions by companies, as more and more employees are opting to live downtown as well. These urban core residents in- fluence the grocery items in demand by looking for quick and convenient options. "We're seeing more of the urban con- sumer who is apt to visit the grocery store two or three times a week and fill up a bas- ket rather than shop for weeks at a time," says Eric Sheaffer, an associate with CBRE in Minneapolis. "If you can walk to the grocery store, there's no need to stock up and worry about spoilage." Grocers have to adapt to current shop- Last year, Target opened a 20,000-square-foot store in Chicago's Hyde Park, the company's fifth flexible format store in Chicago. For Sale For Lease Flora, IL Winchester, IN Asking Price: $1,490,000 • Cap Rate: 8.1% Asking Price: $1,525,000 • Cap Rate: 7.5% 3,000 SF • Price: $12.00/SF 4,400 SF • Price: $16.00/SF Orland Park, IL Evergreen Park, IL Marathon Gas 50 50 45 32 32 32 32 27 27 U N D E R C O N T R A C T Contact: Terry McCollom (708) 383-6450

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