Bed Bath and Beyond is contemplating ways to increase their market share as it is targeting to sign a lease to acquire more than 100,000 square feet at liberty view industrial plaza. The home-furnisher has penned down its plans to place Bed Bath and Beyond, Buy Buy Baby, Cost Plus World Market and Harmon Face Values on the second floor of the building.
Tim King, managing partner at CPEX Real Estate LLC quoted, “They are going to be bringing a whole new center of retail gravity to this part of the world”. This particular lease is a big achievement for the owner of the building. The firm was trying to target this vacant industrial place since past two and a half years, while spending over $100 million in the process.
Bed Bath and Beyond initially tried a simpler approach by opening only one retail store. However, they realized to create a whole new shopping experience by diversifying their approach. The main idea behind this branching out was to attract a variety of different customers from the entire neighborhood. It is anticipated that the property value will appreciate because of this massive project, attracting customers along with other shops and franchises.
Brooklyn has gained popularity in recent years, the exponential increase in the residential platforms have provided a powerful channel for these retailers. The further increase in these retailer corridors are predicted as shown by the CPEX retail report for the fiscal year 2014.
Industrial city which is located adjacent to liberty view industrial plaza has already managed to secure a variety of tenants. The main objective of Sunset Park is to create a growing industrial district by focusing on New York City’s capability to grasp partnership with huge companies. Salmar outbidded everyone to spearhead the redevelopment of liberty view industrial plaza, a humongous structure that surrounds the entire second and third avenue.
The agreement signed by the Salmar Properties LLC includes a clause that 15% of the building will be dedicated to retail while remainder is assigned to industrial. The Salmar Properties LLC partners, Mr Schein and Sal Rusi have forecasted a significant increase in the retailers. This is mainly because of the rising rents in the other areas. The city has announced investment of over $3.5 million to construct another 140,000 square feet of area at the complex for its whole new section of fashion manufacturing stores.
Bed Bath and Beyond (NASDAQ:BBBY) stock closed at $77.50 on February 9.
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