$223 Million Spent! Why Publix Is Taking Over Florida Shopping Centers

Photo byWKMG

If you’re a Floridian, you might’ve noticed that Publix has been on a bit of a shopping spree lately – but they’re not just stocking up on groceries. They’ve been making some serious moves in the real estate market, spending millions to buy out shopping centers where they’re already located. So, what’s the big idea behind all this? Let’s break it down.

Publix’s Recent Real Estate Moves

In just the last few years, Publix has shelled out a whopping $223 million to buy up shopping centers all over Florida. Some of their biggest purchases include The Ramblewood Square Shopping Center in Coral Springs for $59 million, the Davie Shopping Center and Regency Square at Broward for $83 million, and the Town Center at Orange Lake in Kissimmee for $16.65 million. That’s some serious investment!

So, Why Is Publix Doing This?

According to real estate expert Suzanne Hollander, an attorney who teaches real estate law at Florida International University (FIU), Publix is more than just your neighborhood grocery store – they’re basically acting like a real estate company that happens to sell groceries on the side. Hollander put it this way: “Publix is really a real estate company that sells groceries.”

The Perks of Owning the Property

By buying these shopping centers, Publix gains a huge advantage. First off, they no longer have to worry about paying rent. Instead, they get to collect rent from the other businesses around them, meaning they’re not just saving money – they’re making it.

And here’s another interesting angle: by owning the shopping center, Publix has much more control over what kinds of businesses set up shop nearby. They can pick and choose the types of stores they want around them, making sure the surrounding shops are the perfect match for their brand.

Adding Value to the Neighborhood

Hollander also pointed out that Publix’s real estate strategy might actually be a good thing for the communities it serves. She explained that by being in control of their locations, Publix can make sure they’re really meeting their customers’ needs, adding value to the neighboring properties and homes. As she put it: “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.”

So, the next time you walk into a Publix, just remember – you’re not just shopping at a grocery store. You’re stepping into the carefully curated world of a company that’s as much about real estate as it is about those famous BOGO deals!