November 13, 2015
Two of the biggest names in the retail and restaurant industries have reportedly decided that they don’t want to spin off their real estate into real estate investment trusts.
In the case of Macy’s, the department-store giant is opting not to start a REIT program, and is instead hiring Tishman Speyer to help identify potential store redevelopment projects nationwide and additional options for its real estate portfolio valued at $7B. Macy’s plans to close between 35 and 40 stores early next year.
Meanwhile, McDonald’s is taking a similar route regarding REITS, because of concerns about how it would impact the company operationally. Instead, the McDonald’s will re-franchise 4,000 locations next year, up from a prior target of 3,500.