Good News for Strip Malls: Small Stores Are Coming Back Strong
The strip mall is a staple of American life with consumers regularly visiting the grocery stores that often anchor these properties. That helped real estate investment trusts (REITs) which focus on this area, such as Brixmor Property Group (NYSE: BRX), Kimco Realty (NYSE: KIM), and Regency Centers (NASDAQ: REG), to weather the 2020 pandemic in relative stride. However, there's another positive trend going on that investors should be aware of beyond the anchor tenants.
Brixmor, Kimco, and Regency all focus on owning open-air shopping centers with grocery stores as anchor tenants. For instance, roughly 70% of Brixmor's rent roll comes from properties that contain a grocery store while Kimco and Regency properties are in the 80% range. The reason is pretty simple: People need to eat, and buying food brings consumers back to a shopping center on a regular basis.
Image source: Getty Images.
Source Fool.com