Distressed Commercial Real Estate

Best Buy Closings 2012: Electronics Giant to Close 50 Stores


Electronic retail giant Best Buy announced Thursday that it will close 50 big box stores in the United States and cut as many as 400 jobs at its corporate headquarters in an effort to improve its bottom line.

According to The Christian Science Monitor, Best Buy, once recognized as the discount king of consumer electronics, is caught between high-end brand stores like Apple Stores and low-cost Internet retailers like Amazon.


“Customers have been increasingly migrating online where they often find better deals, forcing Best Buy to figure out a reason why shoppers would need to visit an actual store,” the CSM report stated.

Last year, Best Buy lost a staggering $1.2 billion as it deeply discounted merchandise to keep pace with rivals Amazon and Wal-Mart.

Sue Busch Nehring, a spokeswoman for Best Buy, said the company has not revealed any detail about the locations of the 50 stores it plans to shutter, adding that the retailer will announce the specific store locations and timing for closings “once they are finalized.”

“We are quite deliberate and thoughtful when we make such decisions,” she said in an e-mail message. “We are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying


In light of the job cuts and store closings, Best Buy plans to use the savings — $250 million this year and another $550 million by 2015, according to company projections — to convert its big boxes to smaller “connected stores” which will sell more connections and services with more focus on mobile phones, tablet computers and e-readers.

The company will experiment with the new store models in San Antonio, Texas and St. Paul, Minnesota.

Forbes writes:

“The renovation would reduce store square footage by 20%, and should be finished by next Christmas. These new so-called ‘Connected Stores’ will focus on selling cell phones, tablet computers and e-readers, as well as service plans not offered by Amazon and Wal-Mart. Best Buy employees in these new stores are expected to show customers how to connect electronics in the home.”

According to the IBTimes, Best Buy shares dropped 14.8 percent in the past year, wiping out about $4 billion in market cap. In that same span of time, the S&P 500 index was up 6.4 percent.

With news of the Best Buy store closings, the company’s stock fell nearly 7 percent, or $1.85, to close Thursday at $24.77.

By Michael Söze

New York Life Signs a Net Lease at Class A Office Building

Fort Lauderdale, Florida - The Net Lease Properties news is regarding a significant net lease offered up in the Fort Lauderdale area of sunny South Florida. The Net Lease properties news staff wants to report of one of Broward County’s largest office net lease agreements of this present year. The Net Lease Properties agreement was properly put together with the help of Stiles Realty. This NNN Commercial Real Estate Group had a short while ago proclaimed that the New York Life Insurance Company had agreed upon a 28,230 square foot net lease.

Broward County's First Silver LEED Certified Net Leased Office Building

The newly signed net lease is in the western are of Broward County. This is a beautiful Multi-Tenant Office Building with plenty of nearby dining and shopping. The New York Life was prepared for instantaneous occupancy at the Lake Shore Plaza II in Florida. New York Life has been announced to be the signature net leased property tenant at this gorgeous Class A office building. This prime NNN Commercial Real Estate development is Sunrise's.(Broward County, Florida) First Silver LEED Certified Multi-Tenant Office Building. This location is nearby the Florida Car Insurance Company who also has Estate Planning and Florida Life Insurance quotes.

Florida NNN Commercial Real Estate Developments

The agent for Stiles Realty leasing Group represented the owner in this premier net lease property transaction. The NNN Commercial Real Estate Broker mentioned that New York Life will be able to make the move its South Florida general office from their previous net lease property location in the Cypress Creek area. The Sunrise area is being set up for Business, retail net lease properties and residential single family and condominium developments. There is not much in the way of Distressed Commercial Properties For Sale in this area.

Sawgrass Mills Outlet Mall and The Colonnade Outlets

The Sunrise Florida area has one of the largest outlet malls in the Country, the Sawgrass Mills. Sawgrass Mills Mall has premium stores such as TJ Maxx, Saks 5th Avenue, Legal Seafood, PF Chang’s and Cheesecake Factory. Now there is The Colonnade Outlets at Sawgrass which offers an completely unique collection of style defining stores such as David Yurman, Burberry’s, Coach, Movado, Neiman Marcus, and Crate & Barrel, The Net Lease Properties tenants can dine in a very sophisticated foliaged, open-air promenade.

Net Lease Properties Tenants and Agreements

The Broward County area net lease in Sunrise is a ten year net lease. This net lease agreement has a move in date that New York Life can start coming in for the month of August. This net lease property agreement allows New York life to take the entire floor, with an agreement for plus additional space, using their 130,000 square feet in the fantastic Sunrise Commercial Property. It appears that Cushman & Wakefield’s Commercial Real Estate Broker represented New York Life in this net lease property business deal.