Rappaport was engaged to reposition and lease a vacant grocery anchor in the heart of downtown Bethesda. The space, which had been occupied by Safeway for more than 30 years, became available after the grocer consolidated operations into another nearby location. While the site benefited from a strong urban location, the existing space presented a number of challenges that limited its appeal to retailers.
At approximately 45,000 SF, the former Safeway box was significantly larger than what most grocery operators require today. In addition, the space had outdated mechanical systems more than three decades old, as well as unusually low ceiling heights that did not align with current grocery design standards. Functional limitations further complicated leasing efforts, particularly an undersized elevator that could not accommodate shopping carts, creating a major barrier to customer accessibility from the structured parking garage below.
Rappaport, led by Executive Directors of Brokerage Mike Howard and Bill Dickinson, conducted an extensive market outreach effort, engaging grocers across the region to identify potential tenants. Through this process, Lidl emerged as the strongest prospect. However, Lidl’s prototype called for only 20,000 to 25,000 SF, roughly half the size of the available space, requiring a creative and strategic approach to both deal structuring and physical repositioning.
To align the opportunity with Lidl’s requirements, Rappaport worked closely with ownership to structure an economically compelling lease, while at the same time, coordinating critical capital improvements to enhance the functionality and customer experience of the space. This included the installation of two new elevators designed to accommodate grocery carts and provide direct access between the store and dedicated retail parking. In parallel, Rappaport collaborated with both landlord and tenant to significantly improve wayfinding throughout the property, introducing clear, high-visibility signage, and directional guidance within the parking garage to ensure customers could easily locate designated parking areas and navigate efficiently to the store entrance.
Through a combination of market expertise, creative problem-solving, and hands-on execution, Rappaport successfully transformed a functionally obsolete retail box into a modern, high-performing grocery destination. The lease with Lidl not only brought a leading international retailer to the property, but also revitalized a key retail anchor in downtown Bethesda, improving accessibility, enhancing the customer experience, and strengthening the long-term value of the space.
Learn more about our past successes and contact us to discover how Rappaport’s expert Landlord Advisory team can help you unlock success at your retail property.
