Development

The Big Box Dilemma

File Type: Free Content, Webinar
Release Date: September 2010
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Best Buy store

Many retailers with expansion plans see opportunity in the "big box" spaces made available by struggling or failed retail chains. But with roughly 120 million square feet of big box space vacated since just January 2008 (a total equivalent to the entire shopping center inventories of Baltimore, Cincinnati and Kansas City combined), questions remain as to just how much of this space will be backfilled, even with the current surge in leasing activity.

This program will explore ongoing trends for retail big box real estate in the United States, including:

  • Who is active in the marketplace and what can we expect over the next 12-18 months? Just how much vacant space will be backfilled?
  • Top-tier big box locations are moving briskly. But what is the outlook for second or third-tier big box properties?
  • Investment sales prices for big box assets in most markets are down by 40 percent or more from the peak real estate values recorded in 2006 and 2007. Rental rates have declined similarly. What can landlords expect in the near future?

We will also explore some of the most successful cases of creative re-use of vacant big boxes throughout the United States.

Presented by: Garrick Brown, vice president - research, Colliers