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CBRE Says Ignore Hype of Big-Box Demise
The demise of the big-box retail category appears to be over-hyped. According to a CBRE Group, Inc. report, while some retailers are closing stores, others in the sector are opening hundreds of stores spanning tens of millions of square feet this year, with less fanfare.
CBRE’s first in a series of “Beyond the Headlines,” reports about the retail real estate market notes 13 retailers with plans to open nearly 1,700 stores cumulatively in the U.S. this year, amounting to more than 40 million square feet. Many are off-price retailers, or discounters, that shoppers increasingly favor for offering low prices as well as occasional surprise discounts and limited-time merchandise to encourage return visits.
CBRE’s Melina Cordero says, “Granted, we will see an increase in vacancy in the big-box sector due to recent bankruptcies and closures. But the hoopla about those collapses nearly ignores that many retailers in the big-box category continue to open additional stores. Some, perhaps a lot, of the big-box space now being vacated won’t be empty for long.”
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