In a recent article published by Chain Store Age, Michael Havdala, senior vice president of retail brokerage, discusses the changing dynamic for discount retailers seeking rapid expansion.
“The wave of chain store closures has more or less ended in 2011 — with a few notable exceptions. As the remaining vacancies are being absorbed, landlords are starting to regain their leverage, with asking rents reversing a two-year downward trend and net rent comps for junior box space seeing a sizeable year-over-year gain.
For the most part, the Circuit City and Linens N’ Things facilities have been leased up, and those that are vacant remain so for good reason — usually an inferior location or lack of demand in a given market. With strong levels of absorption taking place in recent months and rents once again on the rise, current trends beg the question: Is the window of opportunity closing for discount retailers?”
Senior Vice President, Retail Brokerage