Metro Commercial’s Michael Gorman spoke to National Real Estate Investor and The Philadelphia Inquirer about the Toys R Us liquidation and the broader implications it will have for retailers, landlords and consumers.
National Estate Estate Investor:
News of retail bankruptcies and store closures have abounded as retailers race to catch up to e-commerce giants like Amazon. However, the leveraged buyout was likely the biggest culprit in the case of Toys ‘R’ Us, particularly as e-commerce transactions still comprise a relatively modest share of total retail sales and some retailers have adapted, says Michael Gorman, executive vice president and principal at Metro Commercial, a full-service commercial real estate firm. The buyout left little cash on hand for in-store and online investments, and eventually debt service payments became insurmountable.
To read the full article, visit National Real Estate Investor.
Michael Gorman, a principal at Mount Laurel-based retail brokerage Metro Commercial, said owners of the better placed of the region’s Toys R Us stores should be able to attract new tenants, while those in more fringe locations may struggle.“Quality real estate will be fine,” he said. “It’s location, location, location.”
To read the full article, visit Philly.com.