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
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
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.