This is a Rosenfeld Realty Advisor exclusive, no article was used! So I was at the ICSC Florida show and saw an old friend there. He recently got a job at the real estate company that handles all of Publix’s retail real estate. He confirmed what we have been speculating on here for some time, that Publix was looking to become an owner and developer. He said that Publix bought 6 centers last year and plans to buy 60 this year. They are undercutting the competition on price, paying 5 caps while everyone else is paying 6. Given their long term goals it only makes sense for them to pay that kind of number for property. Publix is already the largest privately held company in Florida and last year they made $1 billion in profit. Very quietly and politely they have become a monster to be reckoned with in the marketplace. And while they haven’t jumped into the development game full force yet, they still control at least 90% of the grocery anchored retail development that happens in Florida. And they will get into the development game full force, the only question is when. While they don’t look like Walmart, they are becoming like them quickly in terms of goals (ownership) and strategy (development). And like other competitors, their ambitions are not limited to Florida. I expect them to quickly expand in the Southeast in the coming years. We will keep our eye on Publix as they grow up. I just wonder what they want to be. As always thanks for reading and have a great day.
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