Edge’s Post

Answer to Fridays Trivia Question-Bed Bath & Beyond and buybuy BABY with 12 former locations. Where is Ross Stores opening new stores. Good space is hard to find these days. We tracked Ross latest round of store openings. Ross new store openings reflect a tremendous amount of creativity in repurposing former dead retailer space into quality retail space Here’s what’s inside the numbers. • We tracked 42 new Ross stores and one dd’s Store that opened in October for almost a million square feet. • Only 7 percent was new development while the rest was leasing former anchor space or redevelopment of small shop space. • Former Bed Bath & Beyond and buybuyBABY represented 28 percent of the new space. • The state receiving the most store openings was California with 8 new stores and in second was Pennsylvania with 6 new stores • Former retailer space taken include JC Penney (3), Kmarts (2), and former Staples and Office Max spaces took four spaces. Link to Fridays Trivia question-https://lnkd.in/eqKPhskt

Bed Bath & Beyond had 480 stores when it filed for bankruptcy on this date last year But just 1 year later its real estate is filling quickly So what tenants have moved into the #BedBathandBeyond real estate? ▪️Burlington Stores, Inc. has already taken 64 sites and wants more ▪️ALDI USA, Barnes & Noble, Inc., Macy's‘s, Havertys Furniture, Ollie's Bargain Outlet, Inc. and TJMaxx have all opened at multiple #BigBox sites ▪️Several have even been made into indoor #pickleball centers via adaptive reuse   And as for the Bed Bath & Beyond brand? Well it also hasn’t gone away Overstock - since re-named Beyond - has re-launched the Bed Bath website for #ecommerce sales And on an earnings call earlier this year, Beyond’s CEO Marcus Lemonis even commented that people frequently ask him "Is Bed Bath & Beyond going to have stores again?" Lemonis indicated that there are no plans to open #retail stores any time soon But he made a point to not rule it out in the future ⬇

#InTheNews: In the years following the pandemic, demand for physical #retail spaces exploded. Now, store openings are set to outpace closings again this year. Kate King reported for The Wall Street Journal that with a low supply of physical spaces, #landlords can easily fill vacated locations, allowing #malls and shopping centers to maintain a healthy selection of retail offerings. Read the article here: bit.ly/3X170B0

Columbus' retail scene is hotter than ever! 🔥 Here’s a breakdown of some trends I have seen: -Tight Market: Inventory is scarce, leading to positive net absorption & rising rents especially exhibited in primary submarkets/sectors (Dublin, New Albany, Grandview, Grove City, Hilliard, Lewis Center, etc.). 📈 -Experiential Retail: With large store closures and bankruptcies of BB&B, Party City, Rite Aid, (Big Lots potentially imminent), etc. junior and big box space is being absorbed with not only the traditional backfills, but also experiential users like pickleball concepts and golf simulators. -Smaller Format/DT Only: Significant inflow of small format users that can fit on small and/or unique parcel sizes. Scooters, 7 Brew, and Dutch Bros are examples. -Culturally-inspired Franchise Concepts: Juice bars, coffee shops, smoothie concepts, mochi, and more are becoming more prevalent in supply. -Development Challenges: Construction costs (specifically labor) continue to remain high, coupled with rising land costs, seemingly developers are having challenges in the free-standing construction space to make deals pencil. I am seeing a pivot to multi-tenant strip retail with rents ranging from $45-55/SF/YR NNN. What other trends are you seeing in the Columbus market? Let's chat! 💬 #ColumbusOhio #Retail #RetailLeasing #RealEstate #CommercialRealEstate #RetailTrends #ExperientialRetail #MarketTrend

When Caruso opened The Grove in Los Angeles in February 2002, everyone said the concept would not work. Now everyone wants to be like them… Last week I talked about how the parent company of IKEA is investing in malls and making Ikea an anchor tenant. Now Simon Property Group just announced that it is investing $400M into Southdale Center in suburban Minneapolis, one of the oldest malls in America. They want to position it as the “Mall of the Future.” “…malls need to become live-work-play communities,” said Bahram Akradi, CEO of Life Time Inc. who opened a location at Southdale Center in late 2019 where the JCPenney once stood. Now it’s the busiest location for the company with the average member going 17 times a month, compared to 11 for other locations. Some of the other additions coming: 💻 A co-working space (of course) 🛒 An upscale grocery store 💰 A luxury wing that will include Burberry, Gucci and Moncler As well as adding these retailers: 🛍 Coach 🛍 Kate Spade 🛍 Lululemon 🛍 Tory Burch 🛍 Max Mara 🛍 Breitling Plus a hotel and apartment building. Malls are going from being these enclosed spaces where you would have to go to make a purchase, to now becoming lifestyle centers where you go to eat, enjoy happy hour, work, live, see a movie, and more. This is why at Universal Media we’re excited for the future. We started in shopping malls over 40 years ago and continue to evolve right alongside them as they become more lifestyle centers. We’re seeing it with The Americana at Brand in Glendale, CA. The Village at Totem Lake in Kirkland, WA. And even here in Utah with the new Mountain View Village in Riverton. Do you agree the mall of the future is a live/work/play destination? #robynsthoughts #futureofretail #lifestylebrand (Photo c/o Town & Country Magazine)

In our latest alert, Travis Jeffries discusses the challenges and opportunities in reletting space vacated by major tenants. With major brick-and-mortar retailers like 99 Cents Only, Bed Bath & Beyond, and Party City all filing for bankruptcy since the beginning of 2023, and potentially more on the horizon, here are some important things to consider. #retail #cre #brickandmortar

Finally a true value-add deal! Excited to have Columbiana Station in the market, which offers rare upside in nearly 100K SF to lease up, 10 separate parcels for exit optionality and several mark-to-market opportunities. Our team looks forward to chatting about this one with you... CBRE’s National Retail Partners is pleased to offer the opportunity to purchase Columbiana Station, one of Columbia, South Carolina’s premier large format shopping centers anchored by PetSmart, Dick’s Sporting Goods, Michaels, Havertys, Planet Fitness and Regal Cinemas (Shadow). Columbiana Station is approximately 76% leased and presents an exceptional opportunity to add value through the lease up of 91,015 SF of space including two adjacent junior anchor spaces that can be leased separately or as a single suite, amounting to an estimated base rent increase of $1.2 M. CBRE projects 44% NOI growth (9.60% CAGR) over 5 years primarily through lease-up. The property is also comprised of 10 separate parcels, providing flexible exit or finance strategies. The property contains 374,753 SF of retail, restaurant and service uses in the heart of a 3.2 million SF, regionally dominant shopping hub with the top regional mall in the MSA. Additional national tenants at Columbiana Station include Bonefish Grill, DXL, Humana, Honey Baked Ham, and 5-11 Tactical. Mike Burkard Kevin Hurley Adam Russ Erin Varol Joe Morrison #NRPSE

If you have an underperforming Kirkland's store in your shopping center, and you are looking for a replacement tenant, hold off. That store may soon convert to an over performing smaller version of the once leading retail chain in the home furnishings space: Bed Bath & Beyond. Kirkland’s is joining forces with Beyond Inc., formerly Overstock, which purchased the Bed Bath & Beyond brand out of bankruptcy and together they are planning to open the first five Bed Bath & Beyond neighborhood small-format stores in 2025, according to Kirkland's CEO Amy Sullivan. The new Bed Bath & Beyond stores will no doubt deliver sales per square foot performance that will substantially exceed the current average Kirkland’s store. What I like about the deal Beyond Inc. struck with Kirkland’s is that they could convert some of the underperforming Kirkland’s stores into small Bed Bath & Beyond stores, which finally revives the former popular brand in the brick-and-mortar space. This would be better than the deal Beyond cut with The Container Store, which just includes opening a department within the store to sell Bed Bath & Beyond merchandise.

Filling the void: Spartanburg's WestGate Mall renews effort to sell vacant spaces 🏙️ Despite the recent surge in economic growth, the commercial real estate market is facing some tough challenges. With the rise of e-commerce and remote work, traditional brick-and-mortar stores are struggling to keep up. 🛍️ This has resulted in a surge of vacant storefronts, like the ones at Spartanburg's Westgate Mall. 💼 As businesses adapt to the changing landscape, it's more important than ever for commercial real estate developers to be innovative and creative in attracting tenants. 💡 This could mean repurposing spaces or offering unique amenities to stand out in a crowded market. 💰 But with the right strategies and a resilient mindset, the commercial real estate market can overcome these challenges and continue to thrive. 💪 #CommercialRealEstate #RetailRevolution #InnovativeSpaces #AdaptOrDie #SpartanburgMall #BusinessChallenges #RealEstateSolutions via @postandcourier

I realize I've been posting a lot about San Francisco lately - I would stop if it became less newsworthy. Instead, the hits just keep on coming, with yesterday's BOMBSHELL that MACY'S IS PLANNING TO CLOSE ITS 700,000 SQ FT UNION SQUARE FLAGSHIP IN THE COMING YEARS (link below). This was no doubt a heavy blow, and at the same time, a bit of a headscratcher, given that Macy's owns its building and would be selling into a down market. Moreover, large brands need the visibility generated by flagship stores in major markets - which Macy's presumably understands better than others, seeing as its 34th Street location in Manhattan has effectively carried the company for years. And it needs that visibility especially in a omnichannel model, with the role that brick-and-mortar must play in customer acquisition and retention. Obviously there's a lot we do not know, but to me, this move does not compute, at least at first glance, which suggests a couple of possibilities. One, Macy's and its new CEO are responding to pressure from activist investors eager to monetize its real estate. Two, it is putting the City on notice, as leverage for securing a hoped-for reassessment, a cash subsidy and/or even greater urgency in revitalizing the district. (Note that the store would not be closing until 2025 at the earliest). In any event, Macy's is definitely one of those legacy brands that I discussed in my last article ("What Really Happened to Downtown Retail", posted on 2/21), struggling mightily to stay relevant. Amidst all its flops in recent decades, it has also made some shrewd decisions. This, though, does not seem like one of them. #retailcontrarian #retail #retailleasing #retailrealestate #retailproperty #retailtrends #retaildevelopment #retailmarket #retailbroker #retailspace #retailindustry #retailers #downtown #mainstreet #mainstreets #citycenter #citycentre #highstreet #placer #placerai #urbanretail #icsc #commercialrealestate #ida #adrr #iedc #uli #icma #marketanalysis #futureofretail #siteselection #urbandevelopment #primeurbancorridors #jll #zoning #landuseplanning #landuse #planning #retailvacancy #vacantstorefronts #vacantretail #emptystorefronts #storefrontvacancy #citymanager #cnu #businessimprovementdistrict #communitybenefitdistrict #businessoffashion #wwd #retailbrew #storefront #downtownrevitalization #nyt #wsj #urbanregeneration #sanfrancisco #sanfranciscorealestate #unionsquare #sfbayarea #sanfranciscobusinesstimes #sfbt #sanfranciscochronicle #chron #sfgate #oewd #planetizen #economicdevelopment #cushmanwakefield #colliers #doomloop #urbandoomloop #sfstandard #kevintruong #johnking #londonbreed #boardofsupervisors #aaronpeskin #spur #covidimpact #covidimpacts #flagshipstore #flagships #paullevy #richardflorida #downtownsanfrancisco #downtownsf #dtsf #marketstreet #sanfranciscocentre #unionsquarepartnership #hoodline #SFist #costar #bisnow #TheregistrySF #svedc #kevinnguyen #macys #marisarodriguez #departmentstore #tonyspring #jeffgennette