Enter to open, tab to navigate, enter to select
Big Box Tenant
Practical Law Glossary Item 9-506-9160 (Approx. 3 pages)
Glossary
Big Box Tenant
A tenant that leases retail space with a large open floor plan that is usually a single-story building. The physical layout for space leased by a big box tenant usually looks like a large windowless box with a floor space of more than 20,000 square feet. The leased space can be a freestanding building or part of a power center.
A big box tenant typically:
- Leases between 20,000 to 250,000 square feet.
- Has a standardized facade.
- Is in a suburban community or along a highway.
- Derives its profits from high sales volumes.
There are several subcategories of big box tenant, including:
- Discount department stores. These tenants offer a wide variety of merchandise from clothing to appliances and can range from 80,000 square feet to 130,000 square feet. Generally, supercenters that range from 100,000 to 250,000 square feet are considered discount department stores. Examples include:
- Target; and
- Wal-Mart.
- Category killers. These tenants offer a wide selection of a specific category of merchandise at prices that are substantially lower than those of their competitors offering the same merchandise. The size can range from 20,000 square feet to 150,000 square feet. Examples include:
- Toys-R-Us; and
- Home Depot.
- Outlet stores. These tenants are the discount branches of major department stores or brand name retailers. They often lease between 20,000 to 80,000 square feet. Examples of outlet stores for department stores include:
- Saks Off Fifth; and
- Nordstrom Rack.
Examples for brand name retailers include:- Timberland; and
- Burberry.
- Warehouse clubs. These tenants offer a variety of products in bulk at wholesale prices. Examples include:
- BJ's Warehouse Club; and
- Costco.