A wave of retail bankruptcies and store closures has led to a surge in second-generation retail space across U.S. shopping centers. While retail vacancies hover near historic lows, it turns out that value chains and specialty operators are filling spaces the fastest.
Adam Greenberg, SVP of Leasing at DLC Management, oversees deals across a national portfolio of open-air shopping centers and works directly with dozens of retailers like Whole Foods, Nordstrom Rack, Boot Barn, Marshalls and HomeGoods.
Greenberg has coordinated hundreds of retail leases and recently helped onboard tenants following DLC's $625 million acquisition of the West Coast portfolio in Q4 2025.
He tells GlobeSt.com that recent retailer bankruptcies have actually created much-needed inventory in what has otherwise been a very supply-constrained environment for well-located open-air shopping centers.
"Retailers consistently tell us their biggest challenge is not consumer demand," Greenberg said. "It is finding quality space in convenient suburban locations where people already shop for daily needs."
When multiple "boxes" become available through bankruptcy, expanding retailers can move quickly and scale by opening several stores at once.
"We are seeing particularly strong demand from fast-growing, value-oriented retailers such as TJX, Ross, Burlington, and Boot Barn, which are eager to backfill these spaces," Greenberg said.
Today's consumer has more choices than ever in how and where they spend their time and money, raising the bar for retailers.
"To consistently drive traffic, brands need to deliver a compelling mix of value, convenience, and a strong in-store experience," according to Greenberg.
"The retailers that are succeeding today are constantly evolving to meet those expectations and, in many cases, are stronger than ever. Those that fail to adapt to changing consumer preferences ultimately fall behind, as we have seen in several recent retail bankruptcies."
Greenberg said he does not see an end in sight to retailers needing to cater to value-oriented consumers.
"Whether by necessity or by choice, shoppers across the income spectrum want to feel they are getting the best value for their dollar," he said.
"Value retail performs well in both strong economies and downturns because it resonates with a broad range of consumers, from households stretching their budgets to higher-income shoppers looking for great deals on quality brands. Retailers that consistently deliver value and convenience will continue to win with today's consumer."
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