Big-Box Retail May Find New Life, But Not In Rural America

Reports of Amazon’s desire to purchase some Toys R Us stores to expand its retail footprint may be good news for retail landlords looking to fill vacant space, but some experts say empty boxes in tertiary or rural locations could have a harder time finding life after liquidation. 

“We looked at Toys R Us, and 35% of the stores that are closing have very strong demographics, and landlords should be OK re-tenanting that space or converting [it for] different uses,” CoStar Director of Research Suzanne Mulvee said. “Thirty percent of stores I wonder if they’ll be able to find a tenant or backfill. What’s in the middle is a gray area.”...

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RSK: I wouldn`t hold my breath on some of these conversions. As they said rural areas will be the toughest. Not all retail big boxes will make good Industrial or office buildings. Maybe mini strip centers or malls?