Do Shopping Centers Really Need Grocery Anchors?

El Warner

Grocery-anchored shopping centers have become a popular retail asset class in the last few years as investors looked for properties that would be Internet resistant. Recently, however, there has been an increase in demand for non-anchored grocery centers as well. Increased prices for grocery-anchored centers are a major factor in this trend, but retail investors are also finding value in retail beyond daily needs. Matthews Real Estate Investment Services recently brokered a deal for Del Oro Marketplace, a 102,000-square-foot shopping center in Oceanside, for $41.7 million and a cap rate of 4.92% in a deal that highlights the trend. We sat down with Matthews Real Estate Investment Services EVP El Warner, who represented the seller in the deal with associate Caitlin Zirpolo, for an exclusive interview to talk about the recent deal and why investors are opening up to non-grocery-anchored shopping centers.

GlobeSt.com: Grocery-anchored and daily-needs shopping centers are among the most sought-after retail assets. This sale is interesting because it is a non-grocery-anchored center. Tell me about the investment activity and demand for non-grocery anchored shopping centers in San Diego last year.