Macy’s Teams Up with CBRE for Store Dispositions
- Jan 06, 2017
Los Angeles—Macy’s Inc. has appointed CBRE Group to assist with the national disposition of a portion of the stores the company intends to close. The partnership comes as CBRE has enhanced its flagship Retail Advisory & Transaction Services business line to include practices in specialized sectors including malls, urban retail and dispositions.
“This partnership brings together two industry leaders, each with more than 100 years of history,” said Jack Durburg, CEO of CBRE, the Americas, in prepared remarks. “We are honored to assist Macy’s, a storied retailer than helped create much of the American retail landscape, as it charts its course to a future of continued retail leadership.”
Macy’s announced last year that it would be closing 100 retail stores, roughly 15 percent of its properties, in early 2017. The decision stems from wanting to concentrate on better-performing assets and growing a stronger online presence. Following the closing, Macy’s plans to invest in improvements at ongoing stores and digital platforms, in an effort to keep up with the changing needs of its customers.
A number of stores are closing since their real estate value is larger than their value to the company as retail stores. Macy’s has already begun selling some of its locations, including the $46 million disposition of five of its stores to General Growth Properties in October 2016. The portfolio comprised stores in North Carolina, Wisconsin, Oklahoma, Virginia and Kentucky.
“CBRE has dedicated the resources and expertise to expand its dispositions business at a time when many retailers are optimizing their store portfolios to focus on their best-positioned, most profitable operations,” added Brandon Famous, senior managing director & retail leader of CBRE, the Americas.
Image courtesy of CBRE Group