Big Box Retailers Are Out

Tenant mixes have changed dramatically in retail, and today, the tenant mix has become more important than ever. Now, there are fewer big box leases and more fast-casual restaurants signing new leases. These trends have emerged since the Great Recession, and will continue to dominate the retail market in the year ahead. We sat down with Gary Glick, head of Cox, Castle & Nicholson LLP’s Retail Practice Group, to talk about retail leasing trends and how the market has changed.

GlobeSt.com: How would you compare retail leasing before the Great Recession to retail leasing today?

Gary Glick: First and foremost, the tenants have changed dramatically. With the demise of power centers, we are rarely seeing much activity from big box retailers, many of whom no longer exist.  For example, it is rare for us to handle a lease with Best Buy, Bed Bath & Beyond, PetsMart or Staples.  In addition, a whole new category of fast casual restaurants that did not exist before the Great Recession has proliferated.  We have worked on numerous lease transactions with tenants such as Tender Greens, Urban Plates, sweetgreens, Mixt and Lyfe Kitchen.