In September 2017, Toys ‘R’ Us filed for bankruptcy, and it recently announced that all stores in the United States will be closing. This means that there will be many lots available for lease or purchase in California. However, there is no guarantee that they will all be turned into office or retail space. Whether a former Toys ‘R’ Us store is used for a new purpose going forward depends on many factors.
Recently, there isn’t as much demand in suburban areas for a big box retailer. Furthermore, consumers aren’t as likely to go to a brick-and-mortar retail store when they could buy that same item online with less effort. If retailers are planning on drawing in customers, they will need to offer an experience worth coming out for. If retailers don’t offer such an experience, there may be no reason for a company to move into a space that Toys ‘R’ Us used to occupy.
However, in places such as Westside Pavilion, space formerly occupied by Toys ‘R’ Us is being converted into a shopping center, movie theater and office space in the same area. Overall, the outlook for real estate in California is generally positive. The recent tax code changes have contributed to this outlook.
Buying commercial real estate may be an effective use of money for business owners and investors alike. For business owners, more space may allow their companies to make more money. For investors, commercial properties offer the opportunity for consistent returns in the long run. An attorney may be able to ensure that there are no title disputes or other issues with a property before closing on a deal. This may increase the odds that an entity can use the property to its full potential.