18 Target Leases Still Up For Grabs
RioCan REIT continues talks with tenants to take over 18 former Target sites still remaining after Canadian Tire and Lowe's agreed to acquire eight locations. In an investor update this week, RioCan noted Canadian Tire will acquire the lease at Sudbury Place in Sudbury. And Lowe's has signed a conditional agreement to acquire seven former Target locations in RioCan properties. For the leftover sites (1.6M SF total, including The Stockyards in Toronto), RioCan is speaking with national tenants, including grocers, fitness operators, discount retailers and sporting goods suppliers.
In many cases, the trust says, former Target stores will need to be redemised and leased to two or more new tenants. At Lawrence Square, RioCan has lease agreements in place with Marshalls and HomeSense, and has a conditional lease deal with a national tenant for the remainder of the Target space. Noting his disappointment with Target’s departure, RioCan CEO Edward Sonshine said “we are ready to close this chapter and exercise control over the 18 disclaimed locations” to minimize disruption and protect shopping centres where Target stores were located.