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
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
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.