Home Depot may be struggling, but it owns a lot of land – up to 15 acres per store, including vast parking lots. Now it hopes to cash in on all that sprawling vacant asphalt by selling off lots to other retailers.
There’s nothing more useless than a vacant parking lot (unless you’re a teen doing wheelies). Most shoppers would appreciate the opportunity to easily check off multiple store errands during their Home Depot shopping trips. So to lure potential tenants during a real estate slump, the company is targeting chains that complement its morning contractor business, like auto repair shops and fast-food chains that sell breakfast.
Recession-resistant chains like Chick-fil-A are continuing to expand, so it could be a smart move. ‘It’s no different from a power center anchored by a Target or Kohl’s, with small tenants like Sally Beauty Supply as a co-tenant,’ says Colin McGranahan of Bernstein Research.