A Real Estate Expert Explains Why Publix Might Be Spending Millions In FL Buying Out Its Landlords

Photo byKeith C from Palm Bay, FL, United States, CC BY-SA 2.0 via Wikimedia Commons

Some Floridians in certain areas of the state are aware that Publix has been aggressively buying out its landlord in shopping centers. I've written about the grocer buying out The Ramblewood Square Shopping Center in Coral Springs for $59 million as well as Davie Shopping Center and Regency Square at Broward for $83 million, and Kissimmee's Town Center at Orange Lake for $16.65 million.

In total, Publix has recently spent a total of $223 million to purchase shopping centers, according to the Palm Beach Post. The publication recently spoke with a real estate expert who explained why Publix might be making these purchases. Below, I've listed some of the reasons given.

Publix Can Be Compared To A Real Estate Company: Suzanne Hollander, an attorney teaching real estate law at FIU, told the Post that, through its various real estate transactions, Publix has become a real estate company of sorts. She explained:

"Publix is really a real estate company that sells groceries."

The Real Estate Deals Allow Publix To Function Rent Free And To Have Control Of The Businesses Around Its Stores, Who Will Pay Rent To Publix: Hollander noted that making large real estate acquisitions allows Publix to have a great deal of control - in addition to the control it already enjoys by serving as an anchor to its shopping centers.

Publix is able to do business rent-free while collecting rent from the tenants around it. Additionally, Publix, now serving as a landlord, has more control over what businesses surround it.

Hollander expressed that Publix's new real estate strategy may actually add value to the communities that it serves, explaining:

"They're really meeting the customer wherever the customer wants to be - in their neighborhood. And that adds value to those neighboring properties and homes."

The author is not affiliated with Publix or any other grocers or retailers.