As the holiday shopping season approaches, retailers are capitalizing on the opportunity to move into vacant Bed Bath & Beyond stores. With the closure of the iconic home goods chain earlier this year, hundreds of empty storefronts have become highly sought-after real estate for various companies. This trend highlights the scarcity of new big box retail spaces and the growing importance of smaller, more efficient stores in the face of online shopping. Despite the “retail apocalypse” narrative, brick-and-mortar stores remain crucial for many shoppers, particularly in the discount segment of retail.<\/p>\n
Former Bed Bath & Beyond stores are attracting retailers due to their ideal locations in the suburbs of mid-size and large cities, as well as their smaller square footage. These qualities are appealing to companies looking to save on rent and labor costs, as well as accommodate the shift towards online shopping. Retailers such as Burlington, Michaels, Barnes & Noble, Ollie’s Bargain Outlet, Macy’s, and HomeGoods have already taken over several Bed Bath & Beyond locations. Additionally, unconventional businesses like indoor pickleball courts, trampoline parks, and bowling alleys have also filled the vacancies.<\/p>\n
The scarcity of new retail space, resulting from a lack of construction since the 2008 financial crisis and the rise of online shopping, has led to historically low retail vacancy rates. Retailers are seizing the opportunity to acquire former Bed Bath & Beyond locations, as there are limited options for new big box stores. The majority of Bed Bath & Beyond stores are under 50,000 square feet, making them attractive to companies favoring smaller spaces. Macy’s, for example, plans to open its smaller “Market by Macy’s” versions in former Bed Bath & Beyond stores.<\/p>\n
Despite the growth of e-commerce, brick-and-mortar stores continue to play a vital role in the retail industry. Discount retailers have experienced significant store growth as budget-conscious shoppers seek low prices. Additionally, companies are utilizing their physical stores to fulfill online orders, which can be more efficient than shipping from warehouses. Even digitally native brands like Warby Parker have recognized the value of physical stores and have opened their own retail locations.<\/p>\n
Former Bed Bath & Beyond spaces have been quickly occupied, with rents reaching up to 50% higher than what the chain was paying. Commercial real estate investment firm CBRE reports that landlords are taking advantage of the vacancies by dividing the spaces into smaller sizes. This strategy allows for higher rents and attracts a wider range of potential tenants. Kimco Realty, which owns 26 former Bed Bath & Beyond leases, has seen new leases at 38% higher rates than the previous rents. The company has already leased spaces to Burlington and HomeGoods and is in discussions with other retailers for the remaining locations.<\/p>\n
The closure of Bed Bath & Beyond stores has created a unique opportunity for retailers and other businesses to expand into highly desirable locations. The scarcity of new retail space, coupled with the enduring importance of brick-and-mortar stores, has made former Bed Bath & Beyond stores a coveted asset. As the retail industry continues to evolve, companies are finding innovative ways to adapt and thrive, utilizing physical stores to meet the changing needs of consumers. The swift occupancy and increased rents of these locations indicate a positive outlook for the future of retail.<\/p>\n","protected":false},"excerpt":{"rendered":"
Former Bed Bath & Beyond locations become coveted real estate for retailers and other companies seeking to expand. As the holiday shopping season approaches, retailers are capitalizing on the opportunity to move into vacant Bed Bath & Beyond stores. With the closure of the iconic home goods chain earlier this year, hundreds of empty storefronts […]<\/p>\n","protected":false},"author":2,"featured_media":4754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[169],"tags":[],"class_list":["post-4753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"_links":{"self":[{"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/posts\/4753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/comments?post=4753"}],"version-history":[{"count":0,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/posts\/4753\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/media\/4754"}],"wp:attachment":[{"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/media?parent=4753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/categories?post=4753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buzz360news.com\/index.php\/wp-json\/wp\/v2\/tags?post=4753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}