Whenever a major corporation like Sears files for Chapter 11 bankruptcy, developers and contractors are keen to acquire valuable properties at a great price. Major retail outlet space can be utilized for a variety of businesses, especially those that require substantial space to operate or sell a wide variety of products.
In part one, the Knoxville construction attorneys at Cotney Construction Law discussed two types of development opportunities available to contractors and developers in the wake of the Sears bankruptcy: retail space and movie theaters. In part two, we will discuss other types of lucrative development opportunities like corporate office space, gyms, and demolition.
Corporate Office Space
As companies grow and expand in the wake of corporate tax cuts, the demand for large corporate office space will continue to rise. What was once a Sears retail store can be transformed into office space for companies with hundreds of employees. Building out office space is relatively easy, although it often requires extensive assistance from skilled electricians. Although most Sears locations are located in malls, which mainly facilitate retail locations, most property managers are eager to fill space, especially considering that most malls already have multiple major retail outlets located on site.
Health and fitness are trending, and as a result, gyms are popping up everywhere. Gyms require very little renovation since roughly 90 percent of the floor space is typically populated by exercise machines and apparatus. Of course, contractors will have to build out locker rooms, renovate bathrooms, and open up the floor plan, but overall, gyms are a surprisingly effective option for filling in old retail space. Plus, subscription-based services like gyms are highly lucrative.
Demolish It and Start Over Again
Repurposing a major retail outlet space in one fell swoop is an attractive proposition, but you can always maximize your value in the long term by demolishing the structure and starting from the beginning. By demolishing an existing structure, you can rebuild it to your exact specifications. For example, by transforming a single Sears store into a dozen or more separate retail locations, you can generate more revenue than a single entity could provide on its own.
There’s never been a better time to purchase major retail outlet space. The opportunity for development is at an all-time high in the wake of Sears’ tragic bankruptcy. Make the most of this opportunity by contacting a Knoxville construction attorney to develop a better understanding of your options.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.