Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Staples To Close Many of Their Retail Locations
Author: Scarinci Hollenbeck, LLC
Date: March 20, 2014
Key Contacts
Back
Staples, Inc. is the latest major retailer to announce that it will close a large number of its retail locations.
Staples plans to close 225 stores, while Sears Holdings will shutter 500 locations, including its flagship Chicago store.
The recent announcements are likely only the tip of the iceberg. According to a recent CNBC report, retail square footage will see a decrease of between one-third and one-half within the next five to 10 years.
With the growing competition from online retailers like Amazon.com, brick and mortar stores are losing money in droves. Shoppers who still like to shop “in person” are also frequenting outdoor malls and outlet centers over traditional malls.
Not surprisingly, the mass exodus is expected to have a significant impact on commercial leasing over the next several years. While the market for office space has slowly rebounded from recession lows, the commercial market for retail space will likely continue to plummet as retailers downsize their square footage or close stores altogether.
For retailers that are still in the position to sign a new commercial lease or negotiate a extension, the ball is certainly in your court. To gain the most negotiating power, it is imperative to do your homework to determine how much vacant space exists; how long the space has remained vacant; and other market conditions in the area. All of these factors will influence your value to the landlord and the likelihood of securing concessions and other favorable terms.
Landlords should also be prepared to be flexible. Given the unpredictability in the retail market, 15-20 year leases may be a thing of the past. Instead, landlords may have to offer short-term leases with an option to renew or long-term leases that contain an early termination clause in order to secure tenants.
If you have any questions about retail leases or would like to discuss additional commercial real estate concerns, please contact me, Victor Kinon, or the Scarinci Hollenbeck attorney with whom you work.
- Industries: Real Estate
- Practices: Commercial Real Estate, Commercial Leasing
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Author: George McGowan
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.