Toys “R” Us has closed around 800 stores this year, more than any other U.S. retailer. Many of these closed properties have become hot commodities on the open market, the Wall Street Journal reported. The toy retailer in March moved to liquidate all its U.S. holdings after a failed restructuring. Landlords, discount merchants and other retailers have gobbled up the vacated properties during the last few months. Sales include owned properties and leases, and some tenants have already moved in. Toys “R” Us properties have generated greater demand than other recent retail bankruptcies, like Hhgregg Inc. and Bon-Ton Stores Inc., in part because Toys “R” Us buildings have longer leases with rents considered cheap by today’s standards. “Many Toys ‘R’ Us leases have significant remaining term at rents that are well below market,” said real-estate research firm Green Street Advisors in a recent note. There is also strong demand for the former toy-store properties because their variety of sizes and configurations make them suitable for everything from health-care operators to auto dealers.
