RCA Insights

Chart: Cap Rates of US Grocery Retailers

By on October 7th, 2019

Cap rates across the spectrum of U.S. grocery tenants vary widely, with assets occupied by specific retailers trading at a premium. The chart shows the average cap rates for 10 regional and national tenants over the past 12 months and the range of cap rates over the past 24 months.

Grocery anchored assets anchored by a tenant other than the 10 named in the chart traded at an average 6.7% cap rate in the year through Q2 2019. In the same period, cap rates for Whole Foods and Trader Joe’s were more than 100 basis points below this average cap rate, while Food Lion was more than 100 basis points above.

1910 US grocer cap rates COTW MAIN-01

This article is an excerpt from an analysis of the grocery anchored retail sector which first appeared in US Capital Trends, published September 25. To learn more about RCA’s suite of global publications and how to subscribe, contact us.  

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Alexis Maltin

Director, Analytics

Alexis Maltin is Director of the Analytics team, based in New York. Her expertise covers all aspects of commercial real estate transactions, financing and capital flows and she is a leader on the publication of RCA’s US Capital Trends.