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Big box retail is far from dead. Sure, retail has evolved tremendously this cycle—shifting to more experiential formats in street-front spaces and mixed-use complexes and a focus on restaurants, grocery and standout boutiques that are Internet resistant; however, strong sales in discount retailers and fitness centers are driving big box activity. In San Diego, this activity has produced healthy absorption and even some build-to-suit development. According to recent research from CBRE, big box absorption surpassed 300,000 square feet in the second quarter with a total of nine lease deals, all lead by fitness and discount retailers.

“The big box absorption is probably average for us. Most of the tenants that are occupying those spaces are discounters or fitness uses,” Reg Kobzi, an SVP at CBRE, tells GlobeSt.com. “The discount retailers are coming in with great earnings for the last quarter. The quarter was the best earnings they have had in a decade. Big box retail is not dead if you look at those earnings. They are really driving big box absorption.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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