J.C Penny has cheap occupancy costs, can they step up?

 J.C. Penney's strength is its low cost of retail space. The company owns 49% of the 111.1 million square feet and leases the remaining against an average of $4 a square foot. This is a competitive advantage with the average specialty retail space being around $40 per square foot. In essence, Ron Johnson and team are making a bet they can expand their existing model with the Sephora store-within-a-store concept to other national brands. How that plays out remains to be seen.

K-Mart moved in and out of bankruptcy years ago, based on low real estate values on their books, making them an attractive take over target and now a come-back kid. Is J.C.Pennys next?

 

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com  Thank you for your interest.

 

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

 

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