Shopping Centers Today

NOV 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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S T O R E F R O N T S THE TOP SOURCE FOR NET LEASE REAL ESTATE LISTINGS NNNEX is a marketplace to list or buy net-leased retail, oce or industrial properties throughout the United States. Since its 2005 launch, NNNEX members have listed and sold more than $5 billion of net-leased real estate. NNNEX features a continuously growing pool of property listings added directly bysellers orbrokers Offering a FREE STANDARD LISTING and FREE EMAIL CAMPAIGN to new users EMAIL us for your free promo codes: A key component of Mattress Firm's reorganization plan calls for closing 700 of its 3,230 company-owned stores. The Houston-based firm, which filed for Chapter 11 bankruptcy pro- tection, says it is targeting locations that are underperforming or in close proximity to other Mattress Firm stores. The company has petitioned the court to reject some 200 store leases, which it says would save about $2.8 million per month. Those stores are located in about 30 of the 49 states in which the retailer operates — near- ly 90 of them are in Illinois, North Carolina and Texas. Most Mattress Firm stores operate in freestanding buildings or in strip-enter end-cap locations. Typically, they mea- sure about 4,500 square feet, though some are twice that size. A year ago newer stores offered investors a triple- net-lease structure, while older ones were double-net-leased, requiring landlords to maintain the roofs and buildings, according to net-lease bro- kerage firm Calkain Cos. The closings represent market-share opportunity for competitors Casper and Mattress One, observers say. Casper began as an online entity, but now has plans to open about 200 brick-and-mor- tar stores. Other replacement candidates could include mobile-phone stores and even some fast-casual restaurants — depending on the availability of parking and space for drive-throughs, according to Grant Gary, president of brokerage services for the Fort Worth, Texas– based Woodmont Co. "This is unlock- ing some tremendous opportunities that, frankly, people have been watching and waiting for," Gary said. Competitors may indeed move into some of these vacated spaces, but only the best, asserts Henry Poer, a first vice president in the CBRE occupier-ser- vices group, who represents tenants with multiple-market requirements, including Mattress One. Poer suggests too that the pool of potential replace- ments is smaller than it would be for other properties, largely because of parking requirements. Though sites vary, landlords have typically paired Mattress Firm's low traffic volume with such high-traffic tenants as quick-ser- vice restaurants. Property owners will probably try to maintain that type of complementary lineup if they can, he says, suggesting that medical providers could make a good match. Q What will become of Mattress Firm stores? By Joe Gose

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