The liquidation of Circuit City is taking a bite out of many of the larger landlords across the country. The electronics retailer was the primary tenant in many of it’s shopping centers and with the company dissolving the revenues will disappear.
That means 567 30,000 square foot leases will be coming on the market very soon in a tough retail environment.
Ouch.
The loss of the large tenant, whose stores typically run from 35,000 to 40,000 square feet, is likely to be felt by some publicly traded shopping center owners, such as Developers Diversified Realty Corp DDR.N, where Circuit City accounted for 1.7 percent of its annual base rent revenue, and Kimco Realty Corp KIM.N, where the chain accounted for 1.5 percent of its annual base revenue, according to Green Street Advisors analyst Nick Vetter.
Other landlords include Inland Western Real Estate Retail Trust, Simon Property Group Inc SPG.N, Vornado Realty Trust VNO.N, Weingarten Realty Investors WRI.N, First Capital Realty Inc (FCR.TO), Kite Realty Group Trust KRG.N and Arcadia Resources Inc (KAD.A), according to financial data firm SNL Financial.
Yet the pain will be felt throughout the retail real estate market, several real estate experts said.
“A company like Circuit City is the poster child for what’s going on,” Mulvee said. “There’s a bigger disease at work here.” via Reuters.
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Yep. I just read about 'ghost malls', malls where the tenants have all or mostly left. I think the American landscape will be littered with these.
I know of a few strip malls in Vegas where Circuit City is the primary tenant! This is going to affect the traffic at the strip malls immensely and not in a good way!