Grocery Anchored center questions
If you're looking at a neighborhood shopping center with a major grocery anchor, how much in-line space is considered ideal?
Also, let's say you have a major grocery store, but also have a very popular restaurant, such as a local pizza or Mexican place. Would those kinds of restaurants or other popular in-line tenants improve the grocery sales? For example, stopping at the grocery store while picking up laundry or the kids from a daycare?
If the grocery store is dated, how difficult is it to remodel? Can this be done in a way to minimize hassle to shoppers or is a complete rebuild more usual?
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@Max Powers with almost all shopping retail centers they have CC&R's (Covenants, Conditions and Restrictions) that outline that with the signing of a tenant that a similar tenant cannot interfere or be leased too. This also occurs within each individual lease. So the grocery store I am sure has a lease that says no other grocer can lease space. I am sure that the local pizza joint may have that they cannot lease to another pizza place. It can be as general or specific as the tenant and owner agree to.
I am sure that there are some cross affect compliments happening with the popular restaurants with the grocery. However that is a marketing question which is not my niche :)
To answer your question about a dated grocery. It really depends on what you mean by updates. Just a coat of paint can be several thousand, while I have seen TI work be done that cost hundreds of thousands and have to close for 3 months, depends on the work. Developers and investment owners always try to save the structure and remodel vs a tear down. The only exception is if a 50k sq ft retail space can be expanded immensely. That may be enough of a factor to tear down and build a much bigger space.