SANTEE, Calif. — Another big retailer is closing its doors in San Diego, hitting customers and the nearby businesses it anchored pretty hard.
Bed Bath & Beyond says it’s closing its Santee store.
The anchor store had been at the Santee Trolley Square since the shopping center opened in early 2000's but in the same shopping center Mimi’s shuttered its doors and remains unoccupied.
Santee's economic development director Pam White says two-thirds of its shopping center are fully occupied.
“I think Santee has a really good track record,” said White. “Post COVID we had this tug-of-war between online retail and brick mortar and that will continue to evolve.”
In the Santee Town Center, work is going inside what used to be Pier 1 Imports.
“Behind the scenes they are working on tentative improvements for a new David’s Bridal,” said White.
The Hometown Buffet has new tenants but says the brokers are staying quiet on who is moving into the space anchored by Home Depot.
At the former Office Depot next to Michael’s is going to be Sportsman’s Warehouse which is set to open October 6.
“This is going to be the Sportsman's Warehouse serving all of San Diego County,” said White.
The Best Buy on Mission Gorge in the CVS parking lot remains closed. White says new tenants are going in there but doesn’t know who.
She says she knows it’s not a Trader Joe’s, which is disappointing for many who wanted the grocer.
“We are still working on that. It’s a 15,000 square foot footprint. It’s the matter of finding the right location and the right space availability,” said White.
The Walgreens on Mission Gorge Road and Magnolia Avenue is also empty and a potential spot for a Trader Joe’s, but all options are being explored.
“We’ve been a working a while on that and that is probably my number one goal to be honest, we know how much our residents want a Trader Joe's and I really want one,” said White.
Commercial real estate agent Tony Franco is not connected to the former Best Buy property but had the scoop.
“Best Buy is going to be a grocery store but can't say which one,” said Franco.
He owns Franco Realty Group and says just like the housing market, commercial real estate took off but is cooling down.
Franco says commercial rent went up by 5% which is usually about 3% but he doesn't expect it to last.
“I expect it to slow down as interest rates start coming up. That's going to be a major headwind coming up for commercial real estate,” said Franco.
He says he’s also seen business close their storefronts but buy industrial space to expand their online business.
Franco says despite a slowdown there's still a future for brick and mortar to exist.
“It's not just all doom and gloom, right? What happens during these bad times is that some of the best deals come across our desk, and people can build great generational wealth,” said Franco.
Santee is hopeful businesses and customers follow its motto, ‘Do More, Due East.’
“We are always going to have turnover, but I think the next wave of turnover is more experiential retail,” said White.
Next week is the Innovating Commerce Serving Communities (formerly International Council of Shopping Centers) conference in San Diego. It focuses on the future of shopping and dining.
October 4, is also the East County Manufacturing Expo and job fair.
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