The iconic American toy store, Toys R Us, filed Chapter 11 bankruptcy in September 2017. In mid-March 2018, the retail chain announced that it was going out of business and shutting down its 1,758 locations around the world. Toys R Us operated in more than 25 cities in New Jersey. For companies looking to get a good deal on prime commercial real estate in the New Jersey market, bidding for the closed Toys R Us store locations may be a solid opportunity. <\/p>\n
The state of New Jersey played an important role in Toys R Us, as the company\u2019s headquarters were in Wayne, where it held 107 acres off Geoffrey Way. This commercial property is zoned as for office-research (\u201cOR\u201d) use. It is possible that this property could be re-zoned.<\/p>\n
Additionally, the company has commercial real estate in Atlantic City, Cherry Hill, Deptford, East Brunswick, Eatontown, Elizabeth, Freehold, Hazlet, Iselin, Jersey City, Lawrenceville, Livingston, Manalapan, Mays Landing, Paramus, Raritan, Rockaway, Secaucus, Tinton Falls, Toms River, Totowa, Union, Vineland, Watchung, and West Windsor. <\/p>\n
With more than 65 years of operation, some of these locations are located in popular shopping centers with low retail turnover. Many are located in prime spots near other thriving retail stores such as Marshalls and Old Navy. <\/p>\n
For the properties actually owned by Toys R Us, an auction is being held to liquidate the locations to interested buyers. Some major national chains, such as ALDI and Target, have shown interest in some of the properties. In particular, Raymour and Flanigan has shown interest in the auction for the Paramus property.<\/p>\n
For the leased properties, there will be some opportunities for real estate investors and other businesses. The average Toys R Us location is 35,000 square feet, with some locations sporting 55,000 square feet. Finding a new tenant who can handle this size store isn\u2019t easy. This means that some landlords will be forced to sell their investment, perhaps at a loss, or rent the property at a lower than usual rate to secure a tenant. <\/p>\n
The loss of Toys R Us will undoubtedly change the New Jersey commercial real estate market. In particular, it makes for a tremendous opportunity for buyers looking to get prime real estate they wouldn\u2019t be able to get or those looking for a good deal. Although many Americans continue to mourn the loss of this national chain, the new businesses that take its place will bring more opportunity to the area.<\/p>\n