Congratulations on winning the auction to purchase Desoto Square Mall — By the way, Macy’s (132,000 Square Feet) is leaving. Have a great day!
By Charles Schelle via Bradenton Herald
Macy’s will be leaving the DeSoto Square mall in favor of its new store set to open in October at the Mall at University Town Center.
Employees at the Bradenton store were informed Thursday morning, said Melissa Goff, a spokeswoman for Macy’s.
Macy’s is opening a 160,000-square-foot store to anchor the Mall at University Town Center, opening Oct. 16.
Macy’s closure could cause other stores to close thanks to co-tenancy clauses.
These clauses are specific and present various scenarios for why a tenant could end their lease early, sometimes with paying a termination fee. In one case with Victoria’s Secret, if the mall’s occupancy drops to 70 percent or less of gross leasable area, it can exercise the right to leave. Also, if the mall has fewer than three anchors, the store could leave, according to its lease. With Macy’s leaving, this could trigger tenants to depart much like Old Navy, FootLocker and others who left after Dillard’s announced its closure in 2009.
The Victoria’s Secret lease also said the mall could not have certain tenants like Walmart, Bass Pro, Home Depot, Big Lots, car rental businesses, an appliance store in a big box anchor, or else it would leave.
If that worse-case scenario occurs, the mall could be mostly empty in two to three years.
If a new owner decides to redevelop the property, they would have the easiest time dealing with tenants for a plan in 2016 and 2017.
More than 40 leases for stores and kiosks have their first expiration in 2016, after 13 leases expire in 2015, including the Dollar Movie theater. A couple of those expiring leases include continued payments from tenants who left the mall early.
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