March 16, 2018 Comments Off on What’s Impact of Toys ‘R’ Us Closing on CRE? Views: 3885 National News, Top National

What’s Impact of Toys ‘R’ Us Closing on CRE?

Toys ‘R’ Us intends to wind down U.S. operations, which is likely to encompass closing its stores in the U.S. The Wayne, NJ-based toy retailer notified employees of its plan to sell or close, and the move was confirmed in a U.S. Bankruptcy Court filing Thursday.

Toys ‘R’ Us filed a motion seeking Bankruptcy Court approval to begin the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the company’s U.S. stores, including those in Puerto Rico.

SRS’s Patrick Luther says, “Toys ‘R’ Us closures will lead to further downward pressure on big box/junior box rental rates, however, many of their leases, as they were of older vintages, featured rents that are in many cases somewhat replaceable. Overall, net retailer openings were greater in 2017 than closures, so we remain bullish and positive about the state of retail. It is merely changing form, and spaces need to be right-sized to fit a wider user base.”

Read more at PR Newswire

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