IBJNews

Movie-rental stores are next retail backfill opportunity

Back to TopCommentsE-mailPrintBookmark and Share

Vacant movie-rental stores are beginning to flood the retail real estate market here and elsewhere as the nation’s second-largest chain liquidates and industry goliath Blockbuster Video fights for its life.

Oregon-based Movie Gallery Inc. began liquidating this spring, the victim of a consumer shift toward mail-order and kiosk rentals. Movie Gallery had eight stores here, six of which operated under the name Hollywood Video. Blockbuster, based in Dallas, had 35 local stores, some of which have already closed even though Blockbuster has so far held off on filing bankruptcy.

In both cases, retail brokers are lining up deals to backfill the spaces, which tend to be free-standing stores ranging in size from 5,000 to 7,500 square feet.

Blockbuster is getting out of its leases when they come up for renewal, said Kyle Hughes, a broker for Veritas Realty LLC.

Blockbuster’s lease for one of those spaces, at 8360 E. 96th St. in Fishers, ended June 30. About two-thirds of the 6,000-square-foot space is already being retrofitted for a 21st Amendment Liquors. An electronics retailer is close to signing a lease for the balance of the space, said Hughes, who is representing the partnership that owns the building. The asking price for the space was $22 a square foot.

Hughes also is representing the owner of a 6,000-square-foot building at 5215 N. College Ave. that housed a Movie Gallery. A restaurant interested in that space will try to line up neighborhood support at a Tuesday meeting of the Meridian Kessler Neighborhood Association.

Potential users for vacated movie-rental stores run the gamut from restaurants to medical office users, said Mark Perlstein, a broker for Sitehawk Retail Real Estate.

“Blockbuster had great real estate,” Perlstein said.

The chain’s prime locations have been attractive to auto parts stores in small towns around the state, said Bill French, a retail specialist with Cassidy Turley.

The spaces are too small for value-oriented retailers, such as Dollar General stores, that have been snapping up space nationwide as they grow to meet demand from consumers who are watching their spending.

French and Perlstein said retailers that play into the consumer appetite for savings are among the most active in the retail real estate market these days.

The two brokers both worked on what is probably the largest deal in the Indianapolis market so far in 2010—K&G Fashion Superstore’s lease of 40,000 square feet at Castleton Crossing, a center at 82nd Street and Allisonville Road owned by Texas-based American National Insurance.

The store, which is moving there in August from a 30,000-square-foot space elsewhere in Castleton, will occupy a space vacated several years ago by Circuit City, the failed electronics retailer. Perlstein represented K&G in the deal and French represented the owner of the center.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

ADVERTISEMENT