Borders’ liquidation woes continue as the proposed deal with Alabama-based bookseller Books-A-Million has fallen through. Meanwhile, commercial real estate lessors are scrambling to deal with the upcoming vacancies.
With hundreds of Borders stores shutting down across the nation, vacant retail space will increase by millions of square feet, and some commercial landlords will lose a large chunk of their annual income. Smaller operations will suffer the most, particularly when you consider that losing a Borders store from your retail park causes a decrease in other rentals, according to an analysis by CoStar Group.
The retail leasing market has taken a large hit in the last few years, as several large stores have closed their doors, including Blockbuster and Circuit City. The decision by Borders to close its doors following an unsuccessful Chapter 11 bankruptcy attempt has left many feeling panicked, from the commercial property owners to the publishing houses.
When a large corporation goes under, everyone feels the effects.
Kevin D. Judd – Washington DC bankruptcy attorney