The year 2020 has continued to disappoint with numerous bankruptcies and permanent store closures. Estimates show close to 130 million square feet of empty retail space plague our nation’s shopping centers. The reopening of retail locations are beginning to increase though incrementally and malls are beginning to find ways to keep their head above water.

To advert the crisis of increased vacancies, the type of tenant needs to evolve and shopping center owners and managers need to find them. 

Below is an offering of various concepts to combat the empty retail space crisis.

Residential conversion

This may be tricky, depending on zoning, but most growing cities have a large demand for housing. Converting a large anchor space into a small apartment development might be the right fit for a vacancy that isn’t suited well for retail. Another similar concept: Senior housing. Many senior housing establishments are relatively small compared to large apartment buildings. And plus side for the seniors? They will be within walking distance to shopping (one less ride on the senior center bus). 

Health/Medical office

Healthcare has been a huge emphasis this year. Medical offices might be considering an expansion or relocation. Hospitals and other health care service locations have expanded their services to include COVID testing. For these health care centers, it can be a challenge to keep at risk or well patients separate from potentially positive COVID patients getting tested. The logistics of separating patients could be simpler if the health care center had a specific location for COVID testing, like an empty retail space. Already eight months into this pandemic with the growing sense that we are still in the middle of it, seems fair to suggest a COVID testing site could reasonably have a 1-2 year lease, at least. Once a vaccine is developed, the testing site can be converted to a COVID vaccine site, extending the lease further. 

Grocery/Essential Retailer

The obvious choice for a large anchor store conversion would be a grocery or other essential retailer. Several grocery stores have done very well, such as Trader Joe’s, Costco, and Target. Other essential retailers such as Home Depot, Lowe’s, and Tractor Supply Co. have also exceeded expectations and continue to expand to new locations. 

Essential Service Businesses

Not all brick and mortar retail is suffering. Essential service businesses have weathered the pandemic because they don’t compete with online shopping. A few examples would be tailors, locksmiths, IT services, banking, building materials supplier, animal shelters, and laundromats. 

Large Retailer

Large retailers, i.e. Best Buy, REI, and Ikea have excelled due to online purchases for sought after products during quarantine, such as electorics, outdoor gear, and furniture. 

Distribution Center

Online retailers are realizing the necessity of warehouse space and logistic centers as they expand. Amazon has reportedly been picking up empty spaces to use as Amazon Fulfillment Centers. Call it ironic fate that Amazon and other online retailers who put a considerable amount of brick and mortar retailers out of business eventually swooped in to fill their own physical location. 

School

In an unprecedented year with shocks to the educational system, more and more parents are seeking top-bar education for their kids. A charter or private school might just be the perfect conversion concept for chronic empty anchor space. Keep in mind important factors, such as enough parking for faculty, parents, and students in addition to a proper, safe space for the drop off and pick up carpool lanes. For smaller vacant spaces, consider a daycare or preschool facility. 

Experience 

For several years there has been a vastly growing ideology based on minimalism, focusing on buying more experiences than stuff. Parents cling to the notion of having less toys to clean up and children remember those peak moments from an adventurous experience. An example of an experience spot would be a children's museum where everything to see is interactive and geared towards budding creativity and learning. Other experience spots include arcades and trampoline parks. 

Pop up Shops 

Seasonal and holiday pop up shops are already a norm for most shopping centers. A different take is a pop up shop for retailers to try out a space for a very short lease time (about 90 days). The retail owner, perhaps one that has not had a physical location before, can sample the experience of a physical store, as well as seeing if the location fits their needs. On the other side, the shopping center owner can get a glimpse to see if this retailer will be the right fit. Another win, it fills an empty vacancy and shoppers get to try out something new. If the pop up show goes well, there is always the option to extend the lease. 

Coworking Space

In addition to retail closing up in spring, office buildings fell dark and like retail, some have not recovered. The new norm for many professionals has been the work from home environment. However, many suffer from the distractions and lack of social interactions. The trend for coworking spaces is growing. Offering flexibility to cater to freelancers, budding entrepreneurs, and even enterprises, coworking spaces have the flexibility to allow professionals to work in a designated work space without lengthy office rental contracts or extra costs for amenities. 

Fear not, there are plentiful ways your empty retail space can be transformed into a thriving location. The next step is to find the right tenant for your vacancy, which can be a burdening chore. Make it easier by seeing how Retailsphere can guide you through your search for the exceptional tenant. Set up a time to meet with a Retailsphere professional today to keep the empty retail crisis away from your space. 

The post The Retail Void: Creative Ways to Fill Empty Spaces appeared first on Retailsphere.

Store closures abound, and it may take several years for a return to “normal.” For some businesses, that may be too late. And for landlords looking for successful tenants, there are clearly some segments you may want to avoid. 

From missteps in treatment of customers and staff to poor management and brand direction, here are 3 types of retailers that took a huge hit in 2020:

Luxury Goods

With unemployment numbers floating around 18 million due to furloughs, job cuts, and people forced to quit jobs to provide child care, the country is collectively tightening its belt. Demand for luxury goods has hit a low. Customers looking for value and bargains may make luxury goods an unattractive option when looking for your next tenant. 

Luxury retailer Neiman Marcus has had to file for Chapter 11, and while the high-end retailer seems to be emerging from bankruptcy, it will be a rocky road to full recovery. 

Another luxury brand, Sephora, was hit hard by ill-timed store expansions, high prices, and a ding to their reputation when they let go hundreds of employees en masse on a muted conference call. 

Experiential Brands

Just a year ago experiential retail was buzzing. Customers looking for novel entertainment flocked to escape rooms, axe throwing taverns, trampoline parks, and board game cafes. Not only has expendable income decreased for potential customers, but the risk of contracting an illness at one of these communal businesses has kept many at home—and it’s taken some of the luster from these previously healthy tenants. 

Major gym chain 24 Hour Fitness has been hit particularly hard in 2020. While gyms faced mandatory closures in many states, the brand also made some major missteps. Filing bankruptcy and closing over 100 locations, 24 Hr Fitness faced major flack when they were sued for continuing to charge their members amid the pandemic. 

Department Stores

While numbers for many department stores have been down for years, taking many traditional shopping malls down with them, the pandemic has served a final blow. While many of the large spaces left by their demise have been successfully transformed into multi-use spaces by landlords, finding one large tenant to take the vacant spot may be ill advised. 

Iconic retailers like Macy’s and J.C. Penney have had to close many stores while sales numbers plunged over the last few months. Macy’s will not host Santa at their flagship store this holiday season for the first time in 160 years, and J.C. Penney has recently put themselves into bankruptcy and up for sale. 

While these retail segments may be struggling, plenty of other retailers have risen to the challenging times of 2020. If you’re looking for a healthy tenant who will bring success to your vacancies, schedule your free Retailsphere demo today for the inside scoop. 

The post 3 Retail Segments to Avoid appeared first on Retailsphere.

It has always been crucial for commercial landlords to have thriving tenants instead of fighting battles with difficult tenants on the brink of eviction. This need has often become clearer as the Covid-19 pandemic continues, often highlighting more troublesome tenants.

Formally evicting a tenant may seem like a painful process, but it can be more beneficial and cheaper than keeping a bad tenant long term. If you have determined a tenant is due for an eviction, we've outlined a few of the steps you'll need take into the account during the eviction process. 

First of all, the CARES Act barred evictions, beginning March 27th of this year, for 120 days. While this deadline has expired, many state and local governments have passed their own eviction moratoriums. Be sure to confirm locally if evictions are now allowed or if they are still barred.  If evictions are being allowed in your area, it is important to confirm and have documentation that your tenants have continued to violate terms in their leasing agreement past the moratorium deadline. 

Secondly, if you have chosen to evict, act within the provisions of the law. Locking out a tenant or removing property owned by the tenant before the eviction process has been completed is considered illegal. Evictions must be done properly, and they can take time.

Before beginning an eviction, consider the following: Landlord and tenant rights vary state by state. Review your state’s laws prior to commencing eviction processes. Keep in mind that if the eviction is taken to court, both the tenants and landlords rights are considered. Before beginning an eviction, do your due diligence to ensure that your duties as a landlord have been fulfilled as prescribed by the agreement, local laws, and policies. These duties may include keeping the unit safe, free of infestation, and keeping the unit in good repair (heating, etc). Refer to the leasing agreement and verify all landlord obligations have been met. Often, courts will rule in the tenants favor if the landlord fails to uphold their duties as a landlord. 

Further, a tenant cannot be evicted without probable cause and proof of the tenant violating the leasing agreement. Some examples of tenant violation may include: 

• Tenant vacated the premises before the lease expired;
• Tenant abandoned the property;
• Tenant is using the premises for a different business use without the landlord’s permission or is conducting an illegal business on the premises;
• Tenant sublet  the property without the landlord’s permission;
• Tenant made unauthorized additions or repairs to the premises;
• Tenant violated the law or;
• Tenant is interfering with another tenant’s ability to conduct business.

The eviction must be a clear violation of the leasing agreement, and as mentioned before, you must have evidence or proof to bring to the court. Proof may include pictures of damage, bounced checks, or police reports. 

Once it is determined that eviction is necessary and that the landlord has upheld their side of the rental agreement, serve a three-day notice to the tenant. In writing, this notice will inform the tenant that they have three full days (first full day is considered the day after the notice is delivered) to adhere to the leasing agreement. The notice must be served to the tenant themselves or a manager on the premises. In addition, another notice may be posted on the front door. If the tenant is not on the premises, and the notice is served to another official, verify via certified mail that the notice is also mailed to the tenant. 

An example of the tenant complying with the three-day notice would be to pay the past due rent in full. Outline specifically the terms in the notice, such as recording the exact amount of rent that is owed. The tenant has three full days. No attempts to evict can take place until after the three days. If the tenant complies, either by paying rent in full or compiling to the other requirements in the notice, no eviction can take place. If the tenant does not comply or does not comply fully, such as only paying partial rent, by the end of the three days, there must be an understanding that eviction will still take place. Partial compliance doesn’t bar them from eviction.

If the tenant has not fulfilled the terms set in the three-day notice, begin the eviction process immediately. As with any eviction process, it is highly recommended for landlords to obtain an attorney, preferably one with experience in commercial real estate and evictions. An attorney will help keep all eviction proceedings legal, like determining if a tenant has declared bankruptcy. In this instance, all creditors, including landlords, are not allowed to collect debt. The landlord’s attempts to collect may result in penalties and additional fees. An attorney can also be helpful in filing an unlawful detainer lawsuit, which is often the next step taken to court. 

If the tenant has refused to fulfill the terms of the leasing agreement and the three-day notice, a court day will be set. In preparation for the hearing, gather all relevant documents to your case. These documents may include, but not be limited to: 

• Leasing agreement;
• The three day notice, certifying that it was served;
• Pictures proof of damage to the property or other violations of the agreement;
• Police reports;
• Bounced rent checks and;
• Photo ID.

The judge will hear both tenant and landlord arguments, so keep in mind having the proper documentation and an attorney who knows how to argue your case and speak to the judge will be critical to gaining a ruling in your favor. If the court does rule in your favor, the tenant will be given a specific amount of days to vacate and the eviction process can continue. If the tenant does not vacate in the court-allotted time, the landlord will need to arrange a time and day with local law enforcement to evict the tenant. 

The worst thing to experience after the stress, pain, and cost of an eviction is to go through another eviction. With a newly vacant space, the most important task will be filling it with a vetted, strong tenant. Retailsphere is focused on helping landlords find high quality tenants to fill your vacancies. If you know you have an eviction in process, it can also be beneficial to start back filling your spaces to decrease time it is empty. Schedule a demo today and to see how simple your tenant search can be. 

This article does not constitute legal advice. We recommend that you consult with legal counsel regarding any eviction process.

The post Evicting a Tenant with a Lease appeared first on Retailsphere.

The term “Retail Apocalypse” is trending. When you’re looking to fill vacancies, other words like “mass closures” or “bankruptcy” could also elicit an immediate “No thanks!” about certain brands. You may already be facing challenges to your business, and it makes sense that you wouldn’t want to take on a struggling tenant. 

But the truth is there’s more to the story. And you don’t want to miss out on a good fit for your vacancy because of a misunderstanding. Let’s take a look at what bankruptcies and closures can actually mean.

Check the Chapter

First things first, make sure you know what a brand is really dealing with. There are many types of bankruptcy. Most of us are familiar with chapter 7 or 11, but the Bankruptcy Code includes a few others as well. While filing for chapter 7 bankruptcy signals a total liquidation of all the company’s assets, chapter 11 allows the business to stay in business and try to work out its issues with less debt on their balance sheets. 

This means that if a brand that might be a good fit for your vacancy recently filed chapter 11 —they may still be a good fit! The bankruptcy may just be a strategic way to restructure debt, and put them in a better position to be a long-term successful tenant.

Closures Are Strategic

While closures often go hand-in-hand with bankruptcy, these two are not always connected. Bankruptcy of any type can include closures, sometimes on a large scale, but in other situations, closures can be a way of trimming the fat to avoid bankruptcy. 

Brands may be required to close locations where they can’t afford rent, they may need to sell real estate to bail themselves out, or they may simply close stores that have long been unprofitable. All of this means that brands announcing closures—if they’re doing it strategically—might actually be a better choice than other brands that are spread too thin. It’s important to be working with brands who are getting ahead of any issue, especially in the current economic climate, to ensure your long-term business health. 

Smart Expansion

One very strategic reason for closures may actually be expansion. Some brands choose to continue expanding by closing the under-performers to open new stores, despite financial challenges, to boost their cash flow. These changes could be to change the square footage of their stores or move into previously untapped markets. 

Escaping an LBO

Another common cause of bankruptcies lately are companies looking to ease the impact of a leveraged buyout. At some point in their history, many retailers have been purchased by other firms, often private equity firms, who used cheap debt to close the transaction. Even if business is thriving, oftentimes they can’t properly expand and build the business how they’d like to without filing for chapter 11 to escape that debt. 

However, even with all that going on these companies are still a viable option for landlords, as they have proven growth potential. This means that it’s critical that you understand the background of why a company is filing bankruptcy if you want to make the best decisions when it comes to new tenants. 

A Means To An End

Overall, bankruptcy and store closures can both be necessary tools in the evolution of a brand, and they don’t necessarily mark the impending doom often associated with the terms. The finances of a company are often complicated, but when you take a look at the long game, many of these brands will be around far into the future and are still worth offering a lease to. Even a company in bankruptcy could be approached for an expansion deal. 

Interested in researching these brands and understanding what’s going on behind the scenes? Want more insight on brands in bankruptcy, and help figuring out what’s really going on? Our research team is here to help! Schedule a free demo of Retailsphere and let us help you fill your vacant spaces.  

The post What Do Bankruptcy and Closures Really Mean For the Future of Retail? appeared first on Retailsphere.

It’s no secret that JCPenney has been struggling for years, and now the global pandemic has led to bankruptcy and the shuttering of over 100 stores across the country. If JCPenney was one of your anchor tenants, the thought of filling such a large space right now could lead to panic. 

Large-scale brands such as Nordstrom (and it’s discount siblings like Nordstrom Rack) are continuing to hold strong, but expansion plans for many large brands have been put on hold, making another large tenant to fill the vacancy hard to come by. 

One way to think about renting out larger retail spaces is to consider out the box strategies. By carving out and separating departments and floors within one store into a multi-use or multi-tenant space, you can fill your square footage and diversify your space. While the layout may need a few tweaks, features like multiple restrooms and plentiful parking will appeal to both tenants and customers. 

At the very least, you may be able to rent out each floor individually to different retailers instead of filling multiple floors with one brand. While Retailsphere can help you identify national retailers that are still expanding, we believe creating diversity within your shopping center and focusing on smaller footprints, will help prevent the revenue loss that comes with a large store closure like JCPenny.

What does this look like in practice? A vacant department store space could be turned into a shoe store, a children’s boutique, a ladies wear brand, and a home goods store, all coming together in an open marketplace of vendors who flow cohesively together to fill all the voids created by the departure of a large department store.

Retailsphere can help you find a wide range of tenants who could thrive in your vacancy. Let’s dive in to the process:

You can find information on large scale tenants by selecting “National Brands” in Retailsphere. But to research brands who are a bit unique for the space, we recommend focusing on using the “Multi Unit Groups” option. Looking for something specific? Choosing “Individual Units” will allow you to search a brand by name and location. 

Your search will depend greatly on the type of businesses you’d like to introduce into your space. For example, some former department stores have been successfully transformed into local college campuses, while others harbor churches and non-profit organizations. For this search, we chose the “Retail Specialty” category to find a variety of niche businesses. 

Once you search, you can further refine by clicking tenant types. You can also focus on brands with smaller footprints by defining square footage requirements. When you find a brand that interests you, click “Add Retailer” to save to your lists for a closer look later. Clicking a brand name will open a full profile. 

While most profiles in Retailsphere’s database provide in-depth information on a brand’s target market, locations, square footage, and more, you can always request research for additional info. Our research team is here to provide you with the most up-to-date information on prospective tenants. 

Whether you choose to reinvent your space as a home to many different brands, or hope to land just one large tenant, Retailsphere is here to help you make the change. Schedule your no-obligation demo today for even more detail on this powerful, and user-friendly, tool.

The post Replacing JCPenney: How To Use Retailsphere To Fill Large Vacancies appeared first on Retailsphere.

The COVID-19 pandemic and subsequent widespread orders to close theaters, retailers and restaurants – or severely restrict their operations – are forcing landlords and tenants to the negotiating table to figure out a way to survive. In many cases, the parties are striking agreements that generally provide a period of rent reduction and then spread repayment out over time in the future.In return, shopping center owners typically want tenants to seek additional support, whether it’s a paycheck protection program (PPP) loan or some other type of funding or financial solution, such as reducing payments tied to business debt.

Yet some tenants see the pandemic as a prime opportunity to break their lease and are displaying little interest in working with landlords to find financial aid, says David Greensfelder, founder of Greensfelder Real Estate Strategy, an Albany, Calif.-based provider of strategic planning, market analytics and development services for owners, occupiers and communities nationally.

“If the landlord is being asked to help, it seems completely reasonable that the tenant would be doing what it can to help itself,” says Greensfelder, who also owns retail property. “Tenants trying to hammer a landlord for rent relief but who are unwilling to help themselves, to me that throws up a red flag. That’s somebody who just wants to try to leverage the situation to get out of a long-term contingent liability.”

Negotiating rent relief mid-lease amid a pandemic is a situation that few if any tenants or property owners ever thought they would face. Without the benefit of precedent – or clairvoyance – most landlords are moving cautiously. NewMark Merrill Cos, an owner of more than 80 shopping centers containing 1,600 tenants primarily in California, has reached accommodations with more than 600 of the roughly 850 tenants that sought rent relief, says Sanford D. Sigal, president and CEO of the Woodland Hills, Calif.-based group.

NewMark Merrill helped tenants apply for PPP loans and seek other financial help. But it also has provided relief in “bite-size” tranches, he adds, so that it can maintain flexibility as the virus plays out.

“At the beginning of this pandemic, it was unknown whether this would be a two or three-month situation, or a two-year situation, so our key objective has been to buy time,” Sigal says. “We’ve been able to do that for most, but clearly there is a group of tenants that want to blame someone else for whatever is going on, and that’s not productive.”

Such recalcitrant tenants heighten an already stressful environment. So what can landlords do? While options are limited, the size and financial wherewithal of the tenant and landlord, the value of the tenant to the property, the amount of time left on the lease, and a tenant’s history are among variables that influence decisions. Just as tenants may try to leverage the circumstances to break a lease, for example, property owners may seize the opportunity to cut loose a problematic business.

The best course of action is to work out a solution – within reason – and establishing good communication can help avoid untenable situations, advises Greg Maloney, CEO and president of Retail at JLL Americas in Atlanta. “Tenants sign a binding lease,” he adds, “and landlords expect them to honor their commitment.”

Still, tenants that request rent relief but then balk at providing sales, balance sheet and profit-and-loss data are usually trying to take advantage of the crisis, Greensfelder says. One tenant he worked with took the position that the lease simply didn’t exist after the pandemic took root. But Greensfelder discovered that the tenant was planning to move the business online and planned to use PPP funds to help pay for related salaries.

“The tenant was just trying to get out of its lease and were setting up a negotiation of how much of the remainder of the rent it would pay,” he states.

For tenants that simply refuse to pay rent, lawsuits are one response. Mall owner Simon Property Group took just such an action against The Gap, for example, which held back $115 million in rent payments from Simon and other property owners in April alone.

But determining whether to take matters to court might be more difficult for smaller landlords dealing with regional or local tenants, says Nick Egelanian, president of Baltimore-based SiteWorks, a consulting and outsourcing company that provides services to shopping center owners and tenants.

“In most cases, landlords are making a tactical decision between how much it costs to chase a tenant and how much they might recover,” Egelanian explains. “If it’s a case where there’s a good, longstanding relationship between the two and going after the tenant may force a family into bankruptcy, then landlords may not want to chase them.”

Some tenants demand more relief than what property owners acting in good faith can offer, Sigal says. On those occasions, landlords aren’t wary about taking legal action, although it is generally considered a last resort.

“We’ve worked with tenants 50 different ways to try to keep them successful, or at least alive,” he says. “But if they still want x, y and z and tell us that the responsibility is all on us, then we’re going to get rid of them as soon as we can. That’s not to say we’re going to treat them like the enemy or harass them; we just expect them to live up to their lease.”

Until the virus dissipates, negotiations may only get more “gut-wrenching” for tenants barely squeaking by even after receiving rent relief, Greensfelder warns. That’s particularly true for parts of the country experiencing spikes in infections.

California recently ordered the re-shuttering of malls, fitness centers, hair salons and other indoor venues in 30 counties, as well as bars and the indoor operations of restaurants, movie theaters and museums statewide. Additionally, Texas closed bars, rolled back restaurant occupancy and paused the progression of its reopening. Other states could follow suit.

“The solutions being worked out today may not take retailers to the period when the virus is no longer a factor,” Egelanian adds. “We just don’t know when that will be, and in the meantime, the extent to which consumers venture out will be based on the perceived risks.”

Despite the current struggles and less-than-rosy outlook, retail leasing continues, Greensfelder and Sigal report. NewMark Merrill recently signed a tenant to a 25,000-square-foot formerly vacant space as well as a restaurant.

“I’m not going to lie and say our leasing isn't killing it, but we’re still seeing activity,” Sigal says. “I think the logic is that the pandemic has a finite period, and tenants see an opportunity to finally get into space that they normally wouldn’t be able to.”

“There are definitely retailers looking for space,” Greensfelder declares. “That’s always the case in an environment like this where tenants think they have all kinds of leverage.”

While the current leasing environment is far from optimal, landlords seeking tenants can use Retailsphere to enhance their chances for success. The Retailsphere platform provides access to robust tenant profiles, allowing users to benchmark and compare performance. Its search function also makes it easy to find exactly the right tenant by enabling users to filter and analyze numerous variables, from retail category to a tenant’s preferred demographics. Sign up today for a demo and see how easy the platform can make your tenant search.

The post When Tenants Won’t Help Themselves during the Covid-19 Pandemic appeared first on Retailsphere.

As the Coronavirus pandemic continues to stretch on, and states are only slowly reopening, there has been a slew of large retailers to file for bankruptcy including J. Crew, Pier 1, Tuesday Morning and JC Penny - all of whom have large national footprints. Many shopping center owners and managers are wondering what they should prepare for as more large retailers are expected to file for Chapter 11 bankruptcy. It is first important to understand the different types of bankruptcy. The purpose of bankruptcy is to allow a retailer time to reorganize, restructure, and move forward in a way that helps them fulfill on their unfulfilled promises - typically regarding debt and underutilized retail space. In some cases, bankruptcy does lead to store closures, but this doesn‚Äôt always have to be the case. 

There are two traditional types of bankruptcy - Chapter 11 or Chapter 7 bankruptcy. Chapter 7 is a full liquidation of all assets. This means the brand isn’t planning to emerge in any state from bankruptcy. If a brand in your shopping center files for Chapter 7 bankruptcy, there is a need for more aggressive planning. Recently, however, most large brands like the ones listed above are filing for Chapter 11 bankruptcy which means they will continue to operate after their filing is complete.

If you do have a brand in your shopping center that has recently filed for bankruptcy, there are a few things you can do to make sure you are appropriately prepared.

1. Understand what type of bankruptcy they'e filing. Chapter 11 bankruptcy has many more potential outcomes, so it is important to stay informed regarding court proceedings. If the filing is Chapter 7, they will be closing their stores. It is time to be looking at new potential tenants to take over this space.  
2. Reach out to the brand to determine if their filing includes paying off retail spaces. At times, bankruptcy filings include restructuring debt to allow a brand to pay for their committed retail spaces. This could mean your stores are safe and will maintain the rest of their lease. 
3. Stay up to date on announced store closures. With many Chapter 11 announcements, a brand will inform the public if store closures are imminent. If they are, it is important to research which locations are potentially part of these closures. If you state or city is on the list, you can begin to scout replacement tenants early, making outreach simpler if the time comes. 
4. Understand your legal position to collect rent. Once a tenant files for bankruptcy, all claims to collect debts, including rent, must stop. Without permission from a court, it is illegal to try to collect debts after a bankruptcy is filed. 
5. Understand the timing of rent petitions. Any rent not paid prior to a bankruptcy filing are considered pre-petition claims. Once a brand files for bankruptcy and stays in a retail space unpaid, a landlord can claim this rent and is considered post-petition. Post-petition claims are almost always paid, while pre-petition claims are not. 
6. Get to know your lease rights. Once a tenant files for bankruptcy, they have 60 days to assume or reject their lease in your space. Chapter 7 implies a rejection of the lease, while Chapter 11 leaves it open to the brand. If a brand rejects the lease, courts will typically issue an immediate eviction notice. If a brand and landlord chose to sign a new lease, this could mean losing out on unpaid rent, but can also be the best way to maximize on previous losses. 
7. Pay attention to filing deadlines. There are situations where a landlord can get out of an automatic stay and remove a tenant early. To do so requires keeping up to date of the tenants bankruptcy deadlines so they can be present at hearings. It is also important to use proper legal council to expedite this type of request with the court. 

Regardless of the outcome, bankruptcy can be a stressful process for any landlord. The best course of action is to stay involved and understand when and where evictions are possible. Many times, there are other courses of action that can result in an easier path than eviction.

If it does look like the brand is going to be closing your local store, or you want to work with legal council to have them evicted, then you should also be prepared to fill the space as quickly as possible. Retailsphere makes it easy to begin prospecting for new tenants in your area.

By digitally researching and communicating with new brands through Retailsphere, and with a clear understanding of bankruptcy deadlines for brand, you may be able to quickly transition a new tenant into your newly vacant spaces with little to no down time. 

Sign up for a no-obligation demo today and see how Retailsphere helps you stay ahead of vacancies.

This does not constitute legal advice. We recommend that you consult with legal counsel regarding any eviction process.

The post My Anchor Tenant Just Filed for Bankruptcy. What Now? appeared first on Retailsphere.

After filing for bankruptcy and closing all 50 stores in February, the health food store Earth Fare is planning a comeback.In early February, the specialty organic grocery store Earth Fare filed for Chapter 11 bankruptcy protection. Within two months, the chain closed all 50 branches, laid off 3,000 staff members, sold 10 locations to larger supermarket chains, and negotiated lease agreements for nine more. The funds accumulated from the sales and closures were substantial enough that newly-appointed CEO Bethany Turon announced plans to reopen seven or eight of their most profitable stores by summertime. The company has already purchased leases and equipment in four states and is finalizing the details for stores in two others.

Earth Fare cited competition rather than over expansion as the sole cause of their financial troubles and subsequent closure. Founder Roger Derrough, who sold the chain back when the company was a 13-store operation, said he was shocked by the news and wondered if better decisions could've been made. He has teamed up with investor Dennis Hulsing and Green Sages cafe founder Randy Talley to restart the company. The group is fully committed to the company's mission to supply communities with organic food that meets high standards for how it is produced and what goes into it.  "We don't want people drawn to this purely for the money,‚Äù Turon told Citizen-Times. ‚ÄúThey also need to be philosophically aligned with the original intentions of Earth Fare."

While almost every other industry is suffering, groceries are big business right now. In March, grocery stores saw a 29.3 percent increase in sales in comparison to where they were the year prior. The largest increases in sales were in household goods, meats, and frozen food. Produce and seafood are also more profitable than normal, but not nearly on the same scale as the aforementioned categories. That said, it is expensive to operate under the current circumstances ‚Äî personal protective equipment must be acquired for staff and employees are pushing against regular pay structures ‚Äî and the long term impact of the crisis on grocery stores is unforeseeable. 

Did you have an Earth Fare in your shopping center? Do you need help filling a large vacant space? Schedule a no-obligation demo today, and let Retailsphere show you how easy finding new tenants can be,

The post Earth Fare Prepping to Reopen at Least 7 Stores by Summer appeared first on Retailsphere.

Each day, RetailSphere’s on-demand research team speaks to hundreds of site selectors about their expansion plans and demographics. Here are five of the many retailers we talked to this week about their specific plans:

1. Club Pilates - Club Pilates studios can vary in size, but typically are looking for between 1,500 square feet and 2,320 square feet. Currently, Club Pilates is expanding in all states. They have over 900 locations nationwide.
2. Rapid Fired Pizza – Currently Rapid Fire Pizza has 20 locations and are currently looking to expand in several states. They are currently seeking around 3,000 square feet for new or existing locations.
3. Verve Coffee Roasters - Verve Coffee Roasters currently has 11 locations in California and are seeking additional locations in the state. Location sizes vary for Verve, ranging from 7,000 square feet to much larger 13,000 square foot locations.
4. Smokey Bones Bar & Fire Grill - Smokey Bones Bar & Fire Grill has locations in Florida, Georgia, Illinois, Indiana, Massachusetts, Ohio, Pennsylvania and South Carolina. They are now seeking nationwide expansion.
5. Sweetgreen – Sweetgreen is located in several states including California, Connecticut, District of Columbia, Florida, Massachusetts, Maryland, New York, Pennsylvania and Virginia.

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About Retailsphere

Founded in 2019, RetailSphere™ is an all-in-one platform that includes the world’s largest contact database of retail commercial real estate decision makers, a robust email and leasing enablement marketing platform and a simple, intuitive and included Pipeline CRM™ tool. RetailSphere™ is modernizing the way the retail industry connects within a single pane of glass.

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