Some retailers are now bargain-hunting for new space

Property prices have plummeted and some successful businesses look to take advantage

National Weekend Edition /
Dec.December 06, 2020 09:00 AM
Stamford Town Center (Google Maps, iStock)

Stamford Town Center (Google Maps, iStock)

The pandemic has decimated much of the retail industry, but some businesses that have weathered the storm are now shopping for properties and new leases at deep discounts.

Property owners have been feeling the economic pressure, and are offloading space for a fraction of the pre-pandemic price and offering lease incentives, according to the Wall Street Journal.

Home furnishing company Safavieh recently paid $20 million for Taubman Centers’ Stamford Town Center. The Connecticut mall was appraised at $64 million last year — when it hit the market — but has lost some of its biggest tenants, including H&M and Apple.

Falling retail property prices are no surprise: Foot traffic in stores on Black Friday, typically the busiest retail day of the year, was about half of what it was last year.

But not all brick-and-mortar businesses are struggling. Brokers say owners of large groceries, furniture, and discount goods stores have fared well, and have become among the most active property shoppers.

Home Depot plans to relocate a basement store on Manhattan’s Upper East Side to a four-story location occupied by Bed Bath & Beyond, which won’t renew its lease as part of a wider downsizing.

Sever Garcia moved his accessories and travel items store from Downtown Brooklyn to Manhattan’s Tribeca neighborhood, the Journal reported. Usually among the priciest square footage in New York, his new landlord offered three months of free rent and other incentives, he said.

Garcia said he also received offers from landlords in SoHo and out in Long Island, who have offered as much as six months of rent based on a percentage of sales. [WSJ] — Dennis Lynch


Related Articles

arrow_forward_ios
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
(Getty)
Disney will shutter dozens of brick-and-mortar stores
Disney will shutter dozens of brick-and-mortar stores
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
Target CEO Brian Cornell. (Getty)
Internet, shminternet: Target adds, renovates stores as money pours in
Internet, shminternet: Target adds, renovates stores as money pours in
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
Auckland, New Zealand and Shenzhen, China (iStock)
Global luxury home sale prices nudged up in 2020
Global luxury home sale prices nudged up in 2020
Century 21 president Marc Benitez (LinkedIn; iStock)
Return of the retailer: Century 21 relaunches
Return of the retailer: Century 21 relaunches
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...