What’s Next For Toys R’ Us Real Estate?
With the more then 700 empty Toys R’ Us stores throughout the US, the question becomes “Who will fill these large boxes?” Although the growth in online shopping has greatly impacted many brick-and-mortar retailers there are retailers who are looking to add more brick-and-mortar locations and Toys R’ Us’ vacant buildings could provide opportunities for those retailers. It is expected that some of the locations will be tenanted by the holiday shopping season while others possibly tenanted in the coming year. With locations largely concentrated in the Northeast, California and Florida, which are markets that are costly to develop, these vacant locations could be very appealing to certain tenants who are looking to open additional brick-and-mortar locations. Companies like Party City, TJX , Ross Stores and Burlington are just a few of the names that could have interest in the former Toy R’ Us locations. All of these names have plans to open additional stores and Burlington has already reached an agreement to take over two former Toys R’ Us locations in California. Dollar General, Dollar Tree and Family Dollar have all announced plans to open additional stores in 2018. Though the footprint of the Toys R’ Us buildings are larger then these tenants typically occupy, there is always the possibility that landlords would consider subdividing to accommodate these names giving greater options for possible tenants due to the smaller space. Even with the larger footprint of these stores and the number of locations vacated, opportunities are presenting themselves indicating that before too long we will see fewer dark Toys R’ Us locations and new retail options filling these locations.