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Bed, Bath and Truly Beyond

Mar 24, 2023

Retail chain Bed, Bath and Beyond’s woes may end up being a good thing for the retail real estate sector. 

The chain is closing 400 stores, according to CNN.

“Already, chains including TJ MaxxHomeGoods and Ross have scooped up the vacant stores.Burlington, Five Below, Nordstrom Rack and budget gym Planet Fitness may also fill up the spaces, say retail landlords and real estate analysts. Bed Bath & Beyond (BBBY)’s real estate is a precious, scarce resource for retailers, gyms and anyone else who needs ample space. There’s been little new retail development since the 2008 financial crisis and the rise of online shopping, and vacancy rates are at historic lows.”

“E-commerce scared a lot of people off from building retail,” said Brandon Isner, the head of retail research at CBRE, a commercial real estate firm. “A lot of great real estate is going to come available into a market where there’s been no vacancies. It will not take long for retailers to occupy those spaces.”

In fact, despite high inflation and a pullback in retail sales, physical store openings exceeded closings last year for the first time since 2016, according to Coresight Research, the article reported.

David Harrison