Kimco Realty has five stores to be closed, followed byDevelopers Diversified Realty and Regency Centers with four. CBL& Associates Properties, General Growth Properties and SimonProperty Group have three units each. Canadian stores are notaffected by the filing.

|

"The REITs will not be receiving lease termination fees for theLNT closings given the bankruptcy, and big box stores are moredifficult to re-lease," said the report, written by ChristyMcElroy. "That said, we are not concerned about the earningsimpact, as the number of stores relative to the size of each of thecompanies should not impact results substantially."

|

But don't expect to see another large user taking the shutteredspaces, which average 33,000 sf. Few chains with units that sizeare expanding right now.

|

"These were the least productive stores for a reason," said JimSullivan, a managing director of Green Street Advisors, the NewportBeach, CA-based real estate research firm and consultancy. "Iwouldn't be surprised to see them chopped up. The stores are inmalls, strip centers, power centers, and all have very differentdynamics."

|

A group of smaller tenants will be much more likely, once thelandlords involved get control of the space. That may be the chiefadvantage.

|

"They have some good landlords who know what they're doing,"said Cory G. Zelnik, president and CEO of New York City-based realestate consultancy Zelnik & Company LLC. "The larger ones willfind this opportunistic."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.