The A&P bankruptcy news turns out to be a bit of a mixed bag: it will be difficult for those in second tier markets, but for many retail center owners, it provides an opportunity for a fresh lease with a higher paying tenant.
From the Shopping Centers Today article:
Landlords of A&P’s top supermarket locations are likely to benefit from the new industry blood that fills the voids, “though secondary locations may be a challenge,” according to Harding. Candidates will include specialty grocers, fitness chains and large off-price retailers, he says.
“A&P has a legacy of established and proven real estate, which is the biggest asset it has right now,” said retail consultant Jeff Green, who heads an eponymous firm in Phoenix. Most locations are positioned to support sustainable supermarket operations, he says. “Not only are the locations suited for other grocers to take over, the stores are right-sized for today’s retail environment,” he said. “A&P never oversized its stores like some competitors.”
Tenant turnover can be a real positive if we are in the right point of the business cycle - which we are now, with low vacancies, a strengthening economy, and a dearth of new construction over the past several years.
Full article here: http://www.icsc.org/press/ap-closings-a-boon-for-many-landlords