Stores Are Closing Across The Country
Across the country we have seen several retailers and restaurants that have tightened their belts, and in some cases even close their doors. Nationally we have seen Circuit City, KB Toy’s Stores, and Linens’n Things Inc. and many more companies that have or are in the process of closing their doors.
In addition to some of the smaller ma and pa shops in St. George, many larger restaurant chains in Washington County have recently gone dark including Sconecutter, Famous Dave’s, and Ruby River and Wienerschnitzel to name a few.
Other companies like Starbucks have tried to keep their head above water by closing down locations that have produced less than desirable results.
Peir 1 Imports Corporate, ( St. George location on River Road), recently announced their game plan in order to “ to meet the challenges of the current environment and to position itself for optimum performance in a post-recession economy.” A key point in the plan is to re-negotiate their terms with landlords. If landlords aren’t willing to adjust their rental rates, Peir 1 will close up to 125 stores. They aren’t the only ones… Other retailers in the same position ( many are found in St. George, Utah) are: Finish Line, Office Depot, Chicos, and the GAP.
In a “buyers market” or in the case of leasing a “tenants market”, good credit-worthy-tenants have found themselves in a position to re-negotiate their lease terms. If a landlord isn’t willing to work with tenants, chances are the landlord will have an extremely difficult time finding a tenant for the vacant 20,000 retail space. The phrase “part of something, or all of nothing” should be the new theme for landlords who are looking to keep their head above water.
With this current economy situation it is a perfect time for the smaller companies who are successful to look into upgrading their St. George commercial real estate lease.
