Bankruptcies and store shutdowns are creating more second-generation space in shopping centers across the country, giving landlords and expanding retailers fresh opportunities in a market that has otherwise remained tight on availability. Even with retail vacancy still near record lows, many of the spaces coming back to market are being absorbed quickly by value-focused and specialty chains.
Adam Greenberg, senior vice president of leasing at DLC Management, said the recent rise in retailer failures has added needed inventory to well-located open-air centers, where available space has been hard to find. He oversees leasing across DLC’s national portfolio and has worked on transactions involving retailers such as Whole Foods, Nordstrom Rack, Boot Barn, Marshalls and HomeGoods, including leasing activity tied to the company’s $625 million West Coast portfolio acquisition in late 2025.
According to Greenberg, the biggest hurdle for many retailers is not weak shopper demand but the lack of quality space in convenient suburban centers anchored by everyday shopping needs. When bankruptcies release multiple larger storefronts at once, expanding chains can move quickly and add several locations in a short period.
He said some of the strongest demand is coming from off-price and value-oriented retailers, including TJX, Ross, Burlington and Boot Barn, which are actively pursuing these openings.
Greenberg also noted that retailers face a more demanding consumer environment, with shoppers expecting a combination of price, convenience and a worthwhile in-store experience. In his view, the brands gaining traction are the ones adjusting to those expectations, while those that fail to keep pace are more likely to lose relevance.
He expects value retail to remain a durable force, arguing that shoppers at all income levels continue to focus on getting more for their money. That broad appeal, he said, helps value-oriented chains perform well in both strong and weaker economic periods, especially when they can pair competitive pricing with convenient locations.
Source: GlobeSt.