The biggest topic of discussion in the Detroit REAL Professionals Group this month was about commercial retailers; specifically, who is going out of business and what or who is going to be able to move in and take over the large retail spaces that are being emptied.

Detroit Member, Brad Rosenberg of Mid-America Real Estate – Michigan, Inc. shared that the most active tenants in the local market are the fitness chains and medical uses. You have Edge Fitness coming in doing about 35,000 square foot units and they have signed 8 leases. You also have Blink fitness, Crunch Fitness, LA Fitness and Planet Fitness active in the market. Brad is not sure where they are coming from, but opines they likely won’t all survive. As far as the medical aspect, Brad says that we are back filling a lot of spaces with dental centers, medical weight loss and urgent care groups. The urgent cares are going into the malls today, as are the massage clinics.

Brad also shared that Bed Bath and Beyond is looking for a deal and trying to renegotiate their leases. They are playing a chicken or egg: Do you want to keep me? Do I want to stay? They are only looking for 5-year lease terms, but center owners will be reluctant to do that term, especially if they have thought of selling the center during that 5 year term as any buyer would value that space at $0. That’s millions of dollars, as they are $8 to $14 per square foot.