For more than a decade, apartment developers have talked about their desire to be near a Whole Foods. Their rationale: Proximity to the premium grocer would lead to higher rents. If that location were in your building, the results could be even better.
In a 2016 study, RCLCO backed up these assertions with an analysis that showed ground-floor Whole Foods can drive rental premiums, enhanced absorption and accelerated rent growth in the buildings that they occupy.
After Amazon acquired Whole Foods in 2017 and other premium grocers gained market share, RCLCO decided to study whether the presence of these grocers helped apartment buildings earn premium rental rates, achieve higher rent growth over time and capture outsized demand during lease-up.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
