Grocery Retail Fund Nuveen Raises $320M for Expansion

Nuveen raises $320M for its grocery retail fund targeting high-demand, grocery-anchored shopping centers across the US.

May 10, 2025

Nuveen Real Estate raised $320M for its US Cities Retail Fund, which targets grocery-anchored and necessity-driven retail centers.
Investor demand is rising amid limited new construction and strong fundamentals in open-air retail, with national grocery-anchored vacancies hitting just 3.5%.
Annual rents for grocery-anchored centers rose 3.1% in Q4 2024, outpacing other retail formats, while 2025 sales volume for open-air retail is projected to exceed $10B.

Key Takeaways

Institutional Appetite Grows

Nuveen Real Estate, a unit of TIAA with $1.3 trillion in assets under management, has raised $320M in new capital for its US Cities Retail Fund, first launched in 2018.

The fund focuses on grocery-anchored and daily-needs shopping centers in high-income suburban markets, with a strong emphasis on grocery retail as a resilient asset class, per Bisnow.

Why It Matters

The investment marks growing institutional confidence in open-air retail, especially assets anchored by essential businesses like grocers. A $21.5M commitment from the Wisconsin Board of Commissioners of Public Lands in December highlights the trend.

A Tight Supply Boosts Value

Market fundamentals have tightened as new development slows. In Q4 2024, national vacancy for grocery-anchored centers fell to 3.5%, a full percentage point below pandemic peaks. For the second year in a row, less than 100,000 SF of new grocery-anchored retail space came online.

Rents and Prices Rise

Annual rents in grocery-anchored retail rose 3.1% year-over-year in Q4 2024, showing strong demand. This growth outpaced neighborhood and power centers. Investors paid a record $209 per SF last year. CBRE projects 2025 sales could exceed $10B.

What’s Next

As flexible work trends persist and new development remains limited, institutional players like Nuveen are expected to continue targeting these defensive retail assets. The fund’s existing $8B portfolio positions it to capitalize on a tight, high-demand segment of the retail market.