Safeway Tenant Overview

Tenant Description

Nationwide grocery chain with a strong local following.

With a strong national presence and great reputation within its sector, Safeway stores are a strong net lease investment. Located in 35 states and the District of Columbia, Safeway has established itself within the grocery sector as a major player. Safeway net lease properties offer investors a strong, long-term investment in the form of 20 year leases usually followed by multiple options to renew. Lease terms also incorporate various increases to protect against inflation. Typically stores are featured in prominent locations that have other national retailers, driving in prospective customers. Due to all of these factors, Safeway leases provide a consistent “hands-off” cash flow for the investor.

Founded in 1915 by M.B. Skaggs in the town of American Falls, ID, Safeway has grown from its humble beginnings. Using narrow profit margins to drive expansion, Skaggs was able to open 428 stores across 10 states by 1926. Using these principles, Safeway is now under the Albertson Companies’ banner, and has 900 locations.

Safeway stands out amongst competitors as stores want to become integrated and interact with the local communities. Multiple locations encourage patrons to donate food and help finance local charities. These initiatives distinguish Safeway and create a connection with local shoppers. Safeway has shown they are a force in the industry, and only look to keep expanding in the grocery market. Having a sense of community integration only endears locals and adds additional value to an already thriving brand.