SAN JOSE — Bed Bath & Beyond has decided to shut numerous Bay Area stores, closures that usher in the specter of more empty storefronts that may pose fresh challenges for real estate owners.
An estimated 14 stores in the Bay Area are on the Bed Bath & Beyond shutdown list, a review of current and previous filings shows.
Finding new tenants, however, might prove to be a significant challenge for Bay Area commercial property owners, at least in more than a few instances.
“It’s very site-specific as to whether these retail boxes are reusable as they are now, or if they have to be redeveloped or repurposed,” said David Taxin, a partner with Meacham/Oppenheimer, a commercial real estate firm.
These are the known Bed Bath & Beyond locations in the Bay Area affected by the retailer’s shutdown spree:
Plenty of retailers and grocers are in the market in a hunt for spaces to occupy.
“Ethnic grocery stores, regular supermarkets, gym and some discount retailers have been looking for space,” Taxin said.
The main problem: There’s a significant size gap in the amount of space prospective tenants are seeking compared with the relatively large size of a number of Bed Bath & Beyond stores.
“Most of the retailers or grocery markets that are looking for space want more like 25,000 to 30,000 square feet,” Taxin said. “But a lot of Bed Bath & Beyond stores are more like 35,000 square feet.”
