Bed Bath and Beyond auctioned off 109 of its leases due to their recent bankruptcy. It turns out that Burlington Coat Factory won 50 (the majority) of the leases at an estimated value of about $13.53 Million which aligns great with their growth plans. Other stores who got locations include Michaels, Haverty’s, Barns and Noble, and Macy’s to name a few. The store locations are tremendous for retailers who want to grow their businesses and in top-notch locations that are not easily found in today’s retail world. Many of them are in large retail centers with big anchor stores such as Target and other high-profile anchors.
Macy’s was even willing to pay a premium for one of the locations at $1.2 million in Winter Park, Florida with plans to open a Bloomingdales. 37 of the leases were awarded to the landlords, which offers them the opportunity to find new tenants at a potentially higher premium. According to the article, “The influx of available stores comes as vacancy rates for shopping centers fell to 5.6% in the first quarter of this year, the lowest level since commercial real estate firm Cushman & Wakefield began tracking in 2007.” With the failures of some retailers, it leads to the successes of others and proves there is always room for growth and opportunity in the retail space.
To read more, click the link below.