Many major retailers have closed stores in recent years, leaving many retail locations available for the few companies that are still expanding as well as e-retailers looking to establish a brick and mortar footprint, according to CNBC.
Millions of square feet of retail space in shopping centers have become unoccupied in the last year, but DDR Corp., a commercial real estate company, says many upstart discount brands are moving in.
"We're actively negotiating deals right now with at least 20 major, national, healthy companies ranging from off-price — like Burlington, Ross, the TJX brands — all the way over to specialty grocers like Lucky's and Sprouts," DDR Corp. CEO David Lukes said on a call with investors, according to CNBC.
Kimco, a commercial real estate company, has received significant interest in its newly vacated former Toys R Us locations.
"These efforts have produced significant interest from major retailers in off-price, furniture, fitness, specialty grocery, and arts and crafts," said Kimco CEO Conor Flynn, according to CNBC.
Acadia Realty Trust CEO Ken Bernstein said the renewed interest in retail spaces in 2018 is a far cry from the industry in 2017.
"In 2017, far too many of our retailers of all different stripes were frozen. So, even if you were willing to lower your rent, there were not worthwhile conversations to be had," said Mr. Bernstein, according to CNBC. "Fast forward to 2018, and what we're seeing — some of our well-known names are back on offense. They're disciplined about rents, but they are ready to sign leases."