Which toys r us locations are closing6/18/2023 ![]() ![]() The Palms owner Weingarten Realty bid $3.6 million to acquire the lease for the 45,000 square foot store, the list of winning bidders showed. “As early as last fall, we have been preparing for leasing opportunities that would be created by the bankruptcy,” Katy Welsh of Colliers International is another commercial broker who handles leasing for a number of national brands interested in acquiring Toys “R” Us leases. “It does create new business activity in commercial real estate.” “For brokers such as myself, it creates opportunities to identify and try to secure big boxes that become available,” he said. That means brokerage firms like CREC can capitalize on the demise of Toys “R” Us by representing either tenants that want to take over a lease or, for example, a real estate investment trust that might redevelop the space or place its own tenants there, Esquenazi said. “A regional chain like Sedano’s supermarket can walk right in and get in cheap. “There are many opportunities for retailers to obtain an unexpired lease that is below market in a good location,” Esquenazi said. “On the other side of the table, brokers will also represent investors and buyers interested in purchasing these properties, and leasing agents benefit from re-leasing these properties.” “Brokers will represent banks, special servicers and landlords in assisting them with the sale of their property,” Ladle said. In other instances, the landlords looking to replace one of the toy stores with a more viable retail tenant are connecting with brokers trying to work out favorable lease terms for clients.Īvison Young’s Ladle said commercial brokers definitely benefit from the increased transactions in the marketplace when retailers liquidate leases and stores. In some cases, national retail brands are retaining brokerages to identify below-market leases for prime locations that Toys “R” Us intends to sell at auction. By all accounts, many varying scenarios are in play.Ĭommercial leasing and sales brokers are bound to see more opportunities as Toys “R” Us and other big-box retailers liquidate real estate assets and look for new tenants, experts say. To get a handle on the fates of the hundreds of shuttering Toys “R” Us stores, the role of the broker community in how things will unfold and the takeaways for the wider world of retail real estate, The Real Deal interviewed some of the nation’s leading retail real estate experts. The remaining unexpired leases are being put up for auction, where landlords have to bid against institutional investors, REITs and big-box retailers. In the case of Toys “R” Us, the company has sought court approval to assign about a quarter of its leases to new tenants, and if the retailer gets the go-ahead, landlords will not get a say in the matter. It’s all going to be one-offs.”Ĭomplicating matters is the fact that landlords are at the mercy of the courts when it comes to reclaiming properties from bankrupt tenants. No one is talking about taking a huge block of stores. Almost every one of these stores is going to have an individual solution. “And there are like a zillion freaking landlords. ![]() “About 500 Toys ‘R’ Us stores are leased,” said Jan Rogers Kniffen, a former retail executive and one of the country’s leading retail consultants. More than half of the closing Toys “R” Us stores are leased to the toy retailer by a dizzying spectrum of landlords, from obscure mom-and-pop commercial real estate firms to big-name real estate investment trusts. ![]()
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