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PECO's Leasing Power: Suburban Retail Demand Hits All-Time High
1 Jun
Summary
- Retailers show robust expansion, seeking grocery-anchored suburban centers.
- Phillips Edison's portfolio boasts 97% occupancy with record-high leasing rates.
- Grocer sales per square foot in PECO's centers increased over 46% since 2019.
Executives at Phillips Edison & Company (PECO) expressed optimism following ICSC Las Vegas, noting sustained demand for grocery-anchored shopping centers. The company highlighted strong retailer expansion plans, a scarcity of available space, and ongoing acquisition prospects.
PECO's strategy is proving effective, supported by the current market conditions. Retailers are prioritizing suburban, grocery-anchored centers, benefiting Phillips Edison's pricing power due to limited supply. The company's portfolio is nearly fully occupied at 97%, with leasing rates and retention at historic highs.
Despite economic concerns like inflation, PECO's focus on necessity-based retail provides resilience. Grocery sales per square foot have seen a remarkable increase of over 46% since 2019, significantly boosting center traffic. Furthermore, 74% of PECO's annualized base rent is derived from essential goods and services, with its tenant demographics exceeding national income averages.
