Grocery stores are different from most retail: people shop routinely. That steady, habit-driven demand makes grocery-anchored real estate unusually durable, and it’s one reason developers and investors continue to back new grocery locations. According to JLL’s 2025 Grocery Report, expansion has remained strong across the U.S. over the last year, driven by both established regional players and aggressive discounters.
A great example is Publix, whose recent expansion in partnership with Calloway Title and Escrow highlights the complexity and opportunity of grocery store development. This October, Publix opened five new stores in Florida, Georgia and South Carolina. Calloway Title provided commercial closing expertise for the Bainbridge, GA, location, to help guide the project through various multi-state title considerations and ensure a smooth opening.
What makes Publix different, and why it matters for real estate
Publix combines data-driven site selection with a company culture that produces particularly loyal customers and motivated store teams. A central part of that culture is employee ownership: Publix’s stock bonus/ESOP-like plans (the PROFIT Plan and related stock programs) give eligible associates ownership stakes and profit participation, which incentivizes service, store cleanliness and operational consistency—all things that translate into repeat visits and stronger sales per square foot. That combination of disciplined site selection and high-performing stores with strong financials—including a 7.3% year-over-year sales increase in Q2, according to this article—is why Publix stores often become dependable anchors for shopping centers.
For investors and developers, the bottom line is simple: grocers that build loyalty and maintain stable operations reduce vacancy risk for adjacent tenants and increase the attractiveness of the entire retail center.
Location selection: The science behind good openings
Modern grocers don’t pick sites by gut alone. Location strategies for expansions rely on a layered analysis of data analytics, as well as:
- Local demographics and household purchasing patterns.
- Traffic counts and drive-time capture.
- Proximity to distribution and supplier networks (to control costs and freshness).
- The competitive landscape and zoning constraints.
JLL and other industry trackers show grocery stores perform best where availability is tight and rent growth is sustained, which makes high-quality sites scarce and more valuable. For developers, that means early access to pipeline sites, strong entitlements work and thoughtful design with features like curbside pickup lanes and delivery staging areas are competitive advantages.
Delivery, pickup and the hybrid model
Online grocery and delivery apps like Instacart, DoorDash, and grocers’ own pickup/delivery platforms have changed shoppers’ expectations for convenience, but they haven’t replaced the in-store trip, particularly for fresh foods, deli and bakery. The result is a hybrid model: stores must excel at the in-person experience while supporting digital fulfillment through dedicated pickup bays, micro-fulfillment considerations and optimized flow for third-party drivers. That has implications for site layout, parking allocation and property management agreements, and it creates new opportunities for adjacent real estate (for example, quick-serve or convenience uses that service pick-up traffic).
Why grocery-anchored centers still outperform
Grocery trips drive routine foot traffic — short, frequent visits that benefit co-tenants like pharmacies, quick-service restaurants, hair salons and service providers. Analysts show grocery-anchored centers attract investor interest because consumers consistently buy essentials: that steadiness supports rental premiums and lowers vacancy risk compared with other retail types. For developers, designing centers that make those quick trips easy with clear pedestrian routes, visible signage and efficient parking increases tenant retention and leasing rate.
Challenges: competition, restaurants and rising costs
The grocery market faces a multitude of challenges:
- Tariffs, inflation and a softening of the labor market have all led to higher grocery costs, according to Newsweek.
- Discount chains like Aldi and specialty grocers like Trader Joe’s carve out distinct share by price or curated assortments.
- Restaurants are reclaiming consumer spend on experiences. It’s a trend that, in some markets, has outpaced grocery spending growth, putting pressure on grocery operators to broaden their fresh and ready-to-eat offerings.
- Rising construction costs, constrained prime sites and supply-chain logistics all increase development complexity and upfront capital requirements.
For investors, the key to overcoming these obstacles is to underwrite conservatively, prioritize grocery partners with proven regional strength and solid online shopping options, and allocate more upfront capital to digital fulfillment and curbside logistics.
Why experienced title and closing partners matter
Grocery developments bring layered legal, environmental and financing conditions, especially across multiple states, including phased land closings, cross-jurisdictional entitlements, lien searches for sophisticated construction financing and site-specific easements for delivery staging. Working with a title partner that understands these kinds of deals and has experience working in multiple states reduces closing delays and transactional risk.
Calloway Title and Escrow was trusted with this expansion because of our track record of closing diverse commercial transactions across the nation. Visit www.titlelaw.com to work with us on your next commercial real estate project.
