Retail Stores Close - What Instead?
1 Reply
Alon Haramati
from Tel Aviv, Tel Aviv
posted 8 months ago
Hi All,
I live in Tel Aviv, Israel, and I'm following the trend here on two main streets since the outbreak of COVID-19 - Almost every day another store is added to the list of stores with a "For Rent/Sale" sign.
I feel sorry for the business owners and hopefully they'll find a new path soon. In the meantime, seems like these spaces won't be rented anytime soon.
What would be the best way for investors (with liquidity) to utilize these spaces? I thought that due to the rise in e-commerce, we could buy these spaces and convert them into "last mile" storage facilities for online retailers. Numbers have to make sense though, as the purchase price per SQFT and annual municipality taxes aren't cheap.
Same applies to office spaces that are starting the same trend. Here a different allocation is required.
Any ideas?
Thanks,
Alon
Ronald Rohde
Attorney from Dallas, TX
replied 8 months ago
Originally posted by @Alon Haramati :Hi All,
I live in Tel Aviv, Israel, and I'm following the trend here on two main streets since the outbreak of COVID-19 - Almost every day another store is added to the list of stores with a "For Rent/Sale" sign.
I feel sorry for the business owners and hopefully they'll find a new path soon. In the meantime, seems like these spaces won't be rented anytime soon.
What would be the best way for investors (with liquidity) to utilize these spaces? I thought that due to the rise in e-commerce, we could buy these spaces and convert them into "last mile" storage facilities for online retailers. Numbers have to make sense though, as the purchase price per SQFT and annual municipality taxes aren't cheap.
Same applies to office spaces that are starting the same trend. Here a different allocation is required.
Any ideas?
Thanks,
Alon
At least
In the US, most landlords won't switch to warehouse from retail because the drop in rent psf is so drastic. Unless you can find tenants to pay significantly more for "last mile" storage vs. an infill true warehouse, it won't work. You'll be better off finding a new tenant/business that is experience based which has new demand...