A recent Real Estate Weekly article, LI department store to become last-mile warehouse, highlights how a old department store in Nassau County is going to be repurposed into a last mile warehouse distribution center. As the article explains
Upon the tenant’s exit, Sanders will be repositioning the building for industrial use, modernized to feature current user requirements, including high ceiling clearance and abundant parking and loading stations. Loading docks and drive-ins will be added to the property to provide tremendous loading and cross-dock capability.
The building’s partial second floor will be removed, which will increase ceiling heights to as much as 32 feet and reduce the building’s square footage to roughly 153,000 s/f Paul Leone and Margaret Tutone of CBRE’s Long Island office will lead the assignment.
This is an interesting transformation of an old retail property into an in-demand last mile warehouse and distribution center. For older aging retail properties which are struggling, the potential for redevelopment into new warehouse space could be an interesting investment opportunity.