Key Highlights

  • RCLCO, real estate consulting firm, looked at effect having street-level high-end grocer had on rent premiums, rent increases and absorption rates
  • Having Whole Foods/Trader Joe’s on street levels raises initial rents average of +5.8% in comparable buildings
  • In 2016, initial rents raised average of 4.3%

The real estate consulting firm, RCLCO, just released its latest research on how having high-end grocers as ground-floor tenants affects rent premiums, rent increases and absorption rates in multi-family buildings.

Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 47372. 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & privacy:

RCLCO did a similar study in 2016 and found that the presence of a high-end grocer rewarded landlords with initial higher rents of approximately +4.3% if the grocer was Whole Foods and +3.2% if Trader Joe’s. Today, Trader Joe’s has “caught up” with Whole Foods and either company will increase initial rents by approximately +5.8%.

Take a look at RCLCO’s results:

Average Rental Premium

Initial rents higher on average when any high-end grocer on street level of building

Ground Floor Tenant                          2016         2020                         2020

Whole Foods Market                          +4.3%       5.8%

Trader Joe’s                                      +3.2%       5.8%            +5.8%

Other high-end grocer                         NA            3.3%

Average Rental Growth

Whole Foods “beat” Trader Joe’s when it came to garnering sustained rent growth

Building & Location                       Premium           Growth

Whole Foods Market

City Hyde Park, Chicago        4.4%             1.0%

222 Hennepin, Minn.             7.3%             4.1%

Dalian on the Park, Phil.         8.7%            3.9%

Vintage on Selby, St. Paul      3.6%             2.3%

The Beverly, Portland OR        8.1%             3.5%

8th & Grand, Los Angeles        4.7%              0.7%

Trader Joe’s

Continuum, Boston                  4%                5.8%

1600 Vine, Los Angeles           5.1%              -0.3%

The Glendon, Los Angeles        2.7%               1.0%

Harlow Hoboken, Hoboken       9.0%               2.0%


Thanks to RCLCO and The New York Times

Also read: Texas and California are Tales of Two State Housing Policies, California’s Median Home Price Jumped +10% to $615,090 in December 2019, Another iBuyer Becomes All-in-One Buyer

Claim Your FREE Real Estate Treasure Map!