Wednesday, 4 July 2018

(The Edge Financial Daily) Toys ‘R’ Us closings drive up US retail vacancy rate


WASHINGTON: Kids across the country are feeling the absence of Toys “R” Us. Retail landlords, too.

The amount of occupied retail real estate in 77 major US metropolitan areas dropped by 3.8 million sq ft in the second quarter, the largest decline since 2009, according to data from real estate researcher Reis Inc released on Monday.

Shuttered stores once occupied by the toy retailer, now in bankruptcy proceedings, played an important part.

“The Toys ‘R’ Us store closings impacted the second-quarter statistics more than any other retailer has in any quarter over the last nine years,” wrote the authors of the report, who tracked more than 80 Toys “R” Us Inc store closings in over 40 metros during the quarter.

The store closures helped drive the national retail vacancy rate to 10.2%, up two-tenths of a per cent from the first quarter and the highest level since 2014. — Bloomberg