The company's store closings will create opportunities for other chains to replace Bed Bath & Beyond. Plus, the majority of its stores are in the suburbs of mid-size and large cities and are under 50,000 square feet, all of which are attractive qualities in retail as brands trend toward smaller spaces to save on rent, labor and other overhead.Ī closed Bed Bath & Beyond store this year in Larkspur, California. The company has stores in all 50 states, with the most in population-dense areas in California, Texas, New Jersey and Florida. So Bed Bath & Beyond has a lot to offer prospective tenants. Store space is incredibly scarce at the moment, and that’s an ongoing trend: Total new commercial retail real estate construction reached a new low in 2022 for the third consecutive year, according to CBRE.Īnd for existing spaces, the retail space vacancy rate fell to 4.9% at the end of 2022 - the lowest level since CBRE began tracking the market in 2005. “So many of our most productive locations were formerly Circuit City or Toys ‘R’ Us or Sports Authority.”Ĭommercial construction and vacancies at record lows “For us, the biggest source of new store locations comes from other retailers closing stores,” Burlington CEO Michael O’Sullivan said on an analyst call in February.

Particularly in a tight commercial real estate market, bad news for one brand means opportunity for another. It will not take long for retailers to occupy those spaces.” “A lot of great real estate is going to come available into a market where there’s been no vacancies. “E-commerce scared a lot of people off from building retail,” said Brandon Isner, the head of retail research at CBRE, a commercial real estate firm.

Anthony Behar/Sipa USA/APīed Bath & Beyond was a retail pioneer. People walk past the entrance to a Bed Bath & Beyond retail store along Sixth Avenue in New York, NY, September 4, 2022.

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