Who Can Grow in Today’s Market?
I used to drive through town and see a sub-par retailer or food establishment and think “I wonder how long are they going to be in business for?”
Today is a different story as I see many National Retailers that are closing their doors and I think “If they can’t make it, who can?”
Sarah M Pardy of Costar says that in their research, of the 15,000 s.f. or more retail leases signed across the country, there is an overwhelming majority of value-oriented retailers such as:
Khol’s, Beall’s Outlet, Ross Dress for Less, TJ Maxx, Big Lots, Dollar General, Tuesday Morning and several other local retailers.
As Landlords are anxious to find someone to occupy their space, some may argue that they are doing themselves a disservice by allowing the value stores to Anchor their shopping center. The risk is that as the recession ends consumers will once again be quick to pay full price for high-end items. If your shopping center is Anchored by value stores, you will not be able to draw in other “High-End” junior tenants, thus decreasing the integrity of the center and limiting your rental income greatly in the future.
This is a bogus argument. Everyone has changed their spending habits…Everyone. Buyer’s abilities have changed, their credit limits have greatly decreased, their disposable income is next to nothing, therefore they will continue looking for deals at the TJ Maxx and Ross Dress for Less stores. This new “bargain shopping” fad will not fade in the next year…five years…or even ten years.
