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Toys R Us closures will whack retail landlords already smarting from big-box tenant losses

philly.com
Updated: March 16, 2018 — 4:48 PM EDT
by Jacob Adelman, Staff Writer

Plans by Toys R Us to shutter its nationwide empire of big-box stores that sell toys, kids’ clothing, and baby goods are poised to empty nearly a million square feet of retail space in the Philadelphia region, a new headache for landlords already seeking tenants for properties vacated by other bankrupt and shrinking retailers.

Wayne, N.J.-based Toys R Us Inc. operates 34 Toys R Us and Babies R Us stores in Southeastern Pennsylvania, South Jersey and northern Delaware, accounting for 967,544 square feet of space, according to data compiled by real estate market tracker CoStar Group.

The chain owns just nine of those properties, leasing the others from commercial landlords who are soon to be faced with finding new tenants amid a dwindling pool of users of big-box spaces. [Read Full Article]