Even before the pandemic, big-box retailers were already struggling with companies losing the competition against eCommerce businesses offering more convenient online alternatives. These blows have left the commercial retail industry struggling even more during these uncertain times.

While some big-box retailers are jumping onto the e-commerce bandwagon, leaving behind empty big-box spaces. Others are looking for creative ways to re-tenant their 200,000 to 250,000 square feet big boxes. While many still prefer to offer the actual physical store appeal, looking for more creative ways to re-tenant these big-box retailers is the next challenge. Here are a few ideas:

Storage Facilities and Warehouses

Some companies have turned away from the regular brick and mortar setups, moved onto online platforms or closed down. The companies that have decided to venture into eCommerce offering everything a one-stop-shop used to provide but on an online selling platform have resulted in many looking for more storage space.

This demand has been a tremendous advantage for empty big-box retailers, offering their big floor spaces to companies such as Amazon, who are leading the way in eCommerce and have been barely affected by the pandemic. With more and more companies opting to sell online, the need for warehouses and storage facilities has put the big boxes back into the business. Retailers such as Walmart, Ikea, Home Depot, BJs, and Costco are a few examples of big-box retailers with a robust online presence.

Shorter Term Leases

Another way to re-tenant the big boxes is to offer shorter-term leases. While leases for big-box retail stores used to have 10 to 20-year terms, shorter periods will allow new businesses an opportunity to test the waters without the risk of longer tenures. This way, you can also help local companies get back on their feet as they adjust to the new normal.

Smaller Spaces

Rather than leasing out the entire area, rent out smaller portions instead. It will allow the businesses to be at an excellent location for a lower rent cost to attract more tenants. Allowing multi-tenant retailers to occupy the spaces will allow a more diverse selection of items that may draw more customers looking for more unique finds than the generic ones offered at most wholesale stores.

Open Spaces

The pandemic places several health guidelines when entering establishments, such as wearing masks, social distancing, and dining outside. Offering open-aired spaces for tenants to meet the new pandemic guidelines is one creative way you can re-tenant your big empty boxes.

With restrictions only allowing a specific capacity for health protocols, allowing more open areas for restaurants or fruit vendors outside will allow you to operate and attract more tenants. This idea might need some renovations to open up the spaces, or you can use parts of your parking lot. With more businesses gearing to get back on track, the idea is to find ways to remain afloat during this moment of adjustment as we move forward from the restrictions of the pandemic.

For more information, you may reach us at info@cbicommercial.com