Metro Commercial Offers Expert Analysis on Recent Toys R Us Liquidation

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.”

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