We're not sure if this is good news or bad news. According to a recent Colliers survey, about one-third of the vacancies left behind by Borders does not have a replacement tenant. At least, those are the headlines we keep seeing.
But two thirds of them ARE spoken for after a year. We're not trying to put a positive spin on bad news, but it seemed like Circuit City stores didn't fill up so quickly.
One thing that not surprising though: Landlords aren't getting the same rents with new tenants that they got from Borders. What they are getting is much lower, on average a 30% reduction from what the book chain was paying.
But a reduction is better than no tenant, as is an non-traditional replacement. As an example, Alameda South Shore Center in California just announced that ULTA Beauty and Total Woman Gym & Day Spa are replacing its former Borders.
Luckily there are a lot of expanding concepts out there looking for space, unlike a few years ago, when cut back their growth plans. Lets just hope that Barnes & Noble stays afloat so landlords are reliant on future expansions.
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