Scores of landlords, as well as retailers, are likely to bid on the spaces.
Vacant retail spaces of 20,000-sq.-ft. and above will soon be easier to find than they have been in a time when new construction has been minimal.
Following approval by the United States Bankruptcy Court, leases for nearly 500 Bed Bath & Beyond and buybuy Baby stores will be up for grabs, according to A&G Real Estate Partners, which has been engaged to put them up for auction.
Bed Bath & Beyond, the 52-year-old chain that was one of the original big-box “category killers,” submitted to its own demise in April by filing Chapter 11 bankruptcy protection when no buyers were interested in taking over the home goods retailer or its baby apparel and goods brand.
Bed Bath and Beyond stores are found in 48 states, ranging in size from 18,000 to 92,000 sq. ft.--the average space being just above 30,000 sq. ft.
Buybuy Baby did business in spaces between 14,000 and 63,000 sq. ft. in 37 states.
"With limited new construction, acquiring leases at auction is an efficient way for junior anchor tenants to meet growth goals by backfilling second-generation space," said Mike Matlat. A&G’s senior managing director. "We anticipate very strong interest from national, regional, and local players."
The properties’ landlords themselves figure to be among the most eager buyers of these large spaces.
"They're looking forward to getting vacant spaces back, either to backfill them with single large-format tenants or subdivide them and re-lease them to multiple, smaller operators," Matlat said.
Expanding chains desirous of 20,000-sq.-ft.-plus spaces will also expected to file bids for this wealth of retail space.
"It's something they have been waiting for--especially the ability to bid for leases in robust submarkets such as those that have long been the focus of Bed Bath & Beyond," said A&G senior managing director Todd Eyler.
A&G and JLL have been retained to market Bed Bath & Beyond’s self-owned data center in North Carolina, along with leases for its warehouses and distribution centers.
"Several of these well-located facilities boast below-market, fixed-rent leases with one or more renewal options," Matlat said.