Supply and Demand for Big Boxes
Retail Traffic Magazine reports that certain retailers are still looking for the right locations to expand, and that reusing existing space is seen as a money saver over new construction. But even more than before, the selling point is location, location, location.
"During the peak of the market many big-box operators opened locations in emerging areas, hoping to capitalize on future residential growth. Those stores might sit unoccupied for years, until the residential sector resurges, [David Solomon, president of NAI ReStore] notes. In many of those cases, landlords will eventually be faced with options ranging from leasing the space to non-retail uses like schools or government agencies to walking away and giving the keys back to the lender."