Why Retailers Win Big By Owning Real Estate


Why Retailers Win Big By Owning Real Estate
Right now, there is a great dichotomy going on as retailers are buying real estate while chains are being urged by activists to divest themselves of properties. Why are retailers buying big properties? Retail chains like Amazon and Costco both have purchased warehouses to improve their warehouse operations, and they hope this action will save them money. It is a matter of control. When you own a warehouse that is critical to your operation, it is likely to be less costly if you operate the location and have developed an efficient distribution system that you control According to a WSJ Property Report by Marc Maurer, the 25 largest retailers acquired about 38 million rentable square feet in new industrial locations in 2020.... ...more RSK: Exactly my point. One of the main reasons Sears to a plunge...they started selling off some of their best locations and leasing back.

- - Volume: 9 - WEEK: 45 Date: 11/2/2021 8:54:37 AM -

Right now, there is a great dichotomy going on as retailers are buying real estate while chains are being urged by activists to divest themselves of properties. Why are retailers buying big properties?

Retail chains like Amazon and Costco both have purchased warehouses to improve their warehouse operations, and they hope this action will save them money. It is a matter of control. When you own a warehouse that is critical to your operation, it is likely to be less costly if you operate the location and have developed an efficient distribution system that you control

According to a WSJ Property Report by Marc Maurer, the 25 largest retailers acquired about 38 million rentable square feet in new industrial locations in 2020....

...more