In the off-price and specialty retail space, TJX and Ross lead the pack with the highest return on their investment compared to how much they pay in rent. This report analyzed companies return on investment as it relates to what they earn in sales per square foot, compared to what they pay in rent per square foot. TJX and Ross both bring in more than 20x greater then what they pay in rent. This is a very healthy ratio for operations and proves their productivity and ability to execute as a strong tenant in a retail shopping center. They are a desirable tenant to a landlord because they can perform and are an attractive tenant to lease space to because of their strong credit rating. The average T.J. Maxx and Marshalls pulls in $304 in average sales per square foot, with Ross at about $288 average sales per square foot according to data from eMarketer.
TJX and Ross are both very strong tenants to lease space to as a shopping center landlord. Their healthy sales to rent ratio is very attractive and proves their ability to execute as an operator. Rent is indicative of sales, so any time a tenant is able to perform at such healthy levels it makes them a desirable tenant to a shopping center landlord.
About The Author: Jeff Dervech
More posts by Jeff Dervech