Some naysayers will argue that Toys “R” Us’ plans to shutter or sell all of its stores in the coming weeks and months signals another blow to brick-and-mortar businesses. The truth is the downfall of the iconic toy supermarket resulted from a combination of significant debt and an inability to afford to keep pace with the competitive pricing and enhanced marketing, customer service experiences and e-commerce offerings of other big-box retailers, such as Target and Walmart. In fact, declining sales at Toys “R” Us stood out during the past holiday season, when most retailers reported strong results.
While the end of the 61-year-old brand will negatively impact its workforce of more than 30,000 employees, its empty stores in prime locations can present unique acquisition opportunities both for retailers seeking to increase market share and for investors pursuing higher cash-flow potential in commercial real estate. Maximizing these opportunities will require the experience of real estate professionals who understand the local markets, have strong tenant relationships and the flexibility and experience to get deals done. In some instances, the properties may require redevelopment to suit the needs of non-retail tenants, including those in fast-food, grocery and/or fitness, and to maximize the space and rental income potential from one or multiple tenants with robust retail platforms.
The team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email firstname.lastname@example.org.