Confidence is high despite closures
The third quarter of 2018 finished with a 7.48% vacancy. With the beginning of the holiday season, Halloween pop-up stores have absorbed space in several centers across Albuquerque. In addition to Spirit Halloween Stores, Party City has launched its own seasonal pop-up store called Halloween City. 155,000 square feet of space was absorbed by Halloween stores.
New restaurant and brewery concepts continue to flourish while national retailers continue to face challenges in adapting to the new retail era. Chapter 11 filings by Toys R Us and Sears were especially poignant to consumers, triggering nostalgia for a bygone retail era.
Toys R Us filed for bankruptcy September 18th and immediately began liquidation of inventory and closed all of its locations nationwide. Consumers were sad to see Geoffrey the Giraffe go and the news that Toys R Us planned to restructure and reopen stores was well received. Shortly after, Sears filed for bankruptcy on October 15th. Sears was listed on several lists of projected 2018 retail bankruptcies published by Moody’s and S&P during the first quarter of 2018.
Key factors this quarter
- During the third quarter, Toys R Us, Sears and Mattress Firm filed for Chapter 11 bankruptcy. The closure of Toys R Us and Sears triggered nostalgia and sadness in consumers.
- Chuze Fitness, a new to market gym concept, entered the Albuquerque market, leasing nearly 110,000 square feet. They will backfill the former Toys R Us at Winrock and Hobby Lobby’s former location at 9350 Eagle Ranch Rd.
- Craft breweries continue to thrive, Quarter Celtic Brewing, Tractor Brewing Co. and Ponderosa Brewing announced new locations during the third quarter. UNM also added an on-campus tap room.
- The owner of Green Jean Farmery has announced a new container park, Tin Can Alley, off of Alameda Blvd. and San Pedro Dr. The project will include Stone Age Climbing Gym, Santa Fe Brewing and Vinaigrette as tenants.