Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Staples To Close Many of Their Retail Locations
Author: Scarinci Hollenbeck, LLC
Date: March 20, 2014
Key Contacts
Back
Staples, Inc. is the latest major retailer to announce that it will close a large number of its retail locations.
Staples plans to close 225 stores, while Sears Holdings will shutter 500 locations, including its flagship Chicago store.
The recent announcements are likely only the tip of the iceberg. According to a recent CNBC report, retail square footage will see a decrease of between one-third and one-half within the next five to 10 years.
With the growing competition from online retailers like Amazon.com, brick and mortar stores are losing money in droves. Shoppers who still like to shop “in person” are also frequenting outdoor malls and outlet centers over traditional malls.
Not surprisingly, the mass exodus is expected to have a significant impact on commercial leasing over the next several years. While the market for office space has slowly rebounded from recession lows, the commercial market for retail space will likely continue to plummet as retailers downsize their square footage or close stores altogether.
For retailers that are still in the position to sign a new commercial lease or negotiate a extension, the ball is certainly in your court. To gain the most negotiating power, it is imperative to do your homework to determine how much vacant space exists; how long the space has remained vacant; and other market conditions in the area. All of these factors will influence your value to the landlord and the likelihood of securing concessions and other favorable terms.
Landlords should also be prepared to be flexible. Given the unpredictability in the retail market, 15-20 year leases may be a thing of the past. Instead, landlords may have to offer short-term leases with an option to renew or long-term leases that contain an early termination clause in order to secure tenants.
If you have any questions about retail leases or would like to discuss additional commercial real estate concerns, please contact me, Victor Kinon, or the Scarinci Hollenbeck attorney with whom you work.
- Industries: Real Estate
- Practices: Commercial Real Estate, Commercial Leasing
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.