Supply and Demand for Big Boxes

The market for big box spaces plunged during the recession as companies like Circuit City folded. But demand is very slightly picking up, and in some places it never went away.

1 minute read

January 10, 2010, 5:00 AM PST

By Tim Halbur


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."

Wednesday, January 6, 2010 in Retail Traffic Magazine

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