Best Buy Closing More Here
Integra Realty Resources prez Jeffrey Rogers says Best Buy is suffering from the popularity of Internet shopping, the recession, and sluggish recovery as reflected in its recent announcement that 5% of its US big box stores will close. But in metro Chicago, it will close about 10% of its 60 big stores that are each around 30k SF. While the new vacancies certainly won’t swamp the region’s 468M SF retail real estate market, the closings reflect weaknesses. Jeffrey says that Illinois unemployment still hovers around 10%, higher than the national average, yet the region is somewhat overstored. Illinois ranks second, only after California, in planned Best Buy store closings, he adds.
So who's moving in to the big box spaces being vacated by Best Buy and other retailers? HSA svp Mike Havdala says healthcare companies have been taking a good amount of that space throughout Chicagoland. In Deerfield on Waukegan, where there was a Borders, NorthShore University Health System is building out a 24.5k SF facility. In Plainfield, Ivory Dental occupied a former Applebee's. In River Forest, Loyola Gottlieb recently opened a 9,800 SF outpatient facility developed by HSA/PrimeCare on the site of a former Plunkett Furniture store. These users want the visible, convenient locations and probably are being offered attractive effective rents.