Grocery store expansion was up 29.4% in 2018, adding more than 17 million square feet in the U.S., according to the JLL U.S. Grocery Tracker 2019.
Florida added the most space with 9.7% of the total thanks to the Publix chain of stores, which will be expanding its headquarters in Lakeland, Fla. as well. California and Texas came next with 7.8% each. California got a boost from Sprouts Farmers Market Inc Aldi and Smart & Final Stores Inc. while Texas saw growth from Kroger Co. and H-E-B. Despite the growth, real estate investment of $9.9 billion is down year-over-year.
“While grocery investment saw a decrease in 2018, that may be due in part to stricter underwriting standards and lack of Trophy and Class A grocery-anchored deals on the market last year,” added Chris Angelone, Retail Capital Markets Lead, JLL.
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