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Costco Looking for Way to Dispose of Surplus Property

SPOKANE, WA-The big box discount retailer opened a brand new store here last week on company-owned property. The rub is that Costco is stuck paying the rent on its former 129,600-sf location, and it's willing to deal.

By Janet Parker | Updated on February 07, 2001

SPOKANE, WA-In December 1983, Costco opened its second store ever here in 129,600 sf of leased space on nine acres at 800 E. Third. Last week, that location was closed as a bigger and better Costco was opened at 5601 E. Sprague. The size of the new company-owned 143,000-sf store, which includes the building and land , facilitated the inclusion of all Costco’s latest and greatest bells and whistles, such as a 5,200-sf tire center and garage and a four-island fueling facility.

The dilemma now facing Costco is what to do with the original property, as its current lease on which will not expire until the end of 2008.

Joel Benoliel, senior VP of real estate for the Issaquah, WA-based Costco, tells GlobeSt.com that the obvious, best solution is to find a new tenant to take the space by sublease or assignment. Another alternative being tossed about is Costco purchasing the property and turning it in a successive sale. Benoliel reasons that it may be easier for Costco to find a buyer than to sublease.

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