Sunday, April 22, 2007
123 retail lease locations available to purchase from one bankruptcy of Hancock Fabrics. If you are a retail landlord, don't assume that if your tenant goes under, that this will leave you with vacant space. As have other companies such as Warehouse Records and Kmart, Hancock Fabrics which declared bankruptcy will generate revenue for their debtors through the sale of these leasehold interests. Most of these sites have under market value rents and therefore have value. The value is determined by the discrepancy between current and market rate rents and the remaining term of the lease plus any options to renew. Do you know of anyone who wants 10,767 square feet in Vacaville for another 16 years? The only other space near me is in Newark, though that has only 2 years remaining. Rats!