»»A considerable amount of big box space was brought to the market in 2018, with nearly 150,000 sq. ft. of that due to the bankruptcy of Toys “R” Us. Around 50,000 sq. ft. came online in the second half of 2018. There has been movement on some of these spaces already, mitigating the fear that they would sit vacant.
»»Some owners across the U.S. are repurposing vacant big box spaces for industrial/ logistics use, a trend identified by CBRE Research. Since 2016, 7.9 million sq. ft. of retail space has turned into 10.9 million sq. ft. of industrial space. This trend is likely to continue as retailers need less physical retail space and more logistics space to accommodate the shift toward e-commerce.
»»Higher-end retailers are also utilizing big box space. There are currently several big box spaces under construction set to open in the near future. The Lot, a luxury cinema experience, is opening two new locations: 28,000 sq. ft. in Del Mar set to open in Q1 2019 and 29,000 sq. ft. in Scripps Ranch set to open early 2020. Luxury fitness Equinox is taking over 33,000 sq. ft. of the former Sears at UTC and will open late 2019.