Value-Oriented Retailers Turn to Lease Auctions and Sales to Fuel Growth

Operators like Burlington, Ross, Five Below and Dollar Tree are landing strong sites in tight markets by acquiring leases and fee-owned properties, A&G Real Estate Partners reports as industry leaders head to ICSC Las Vegas.

LAS VEGAS, May 14, 2026 /PRNewswire/ -- Healthy, value-oriented retailers are using competitive sales and auctions of leases and fee-owned properties to accelerate their growth, according to New York-based advisory firm A&G Real Estate Partners.

Store closures in the massive U.S. drugstore sector have made millions of square feet available at a time of limited new construction, contributing to the trend toward using real estate sales and lease auctions to grow retail footprints, A&G has found.

As a case in point, A&G's campaign for Rite Aid, completed last year, attracted more than 1,700 interested parties and generated approximately $95 million in recoveries with Dollar Tree, Five Below, Burlington, Ross, and Ace Hardware all buying leases. A&G also sold 50 fee-owned Rite Aid properties. Notably, specialty chains such as Barnes & Noble, Books-A-Million, Cavender's, Hobby Lobby and Michaels leveraged A&G's auctions to acquire real estate assets from Rite Aid as well as Party City, Big Lots and Joann, among others.

A&G is now seeing a similar pattern as it markets 78 Walgreens locations across the U.S., offering a mix of leases and fee-owned assets that can support off-price, discount and specialty retail formats.

"Many retailers, especially off-price and value-oriented operators, have made lease auctions and property sales a key component of their growth strategy," said A&G Co-President Emilio Amendola. "We're seeing disciplined operators turn other companies' portfolio changes into strategic expansion opportunities as they seek high-traffic locations."

Healthy operators zero in on real estate
While some healthy retailers are buying assets, others such as The Container Store (TCS), have focused on boosting profits by improving the performance of their existing portfolios. In TCS's case, A&G delivered $109 million in occupancy cost reductions within just 37 days of the retailer's January 28, 2025, bankruptcy filing, giving the chain a more efficient cost structure to better align with today's market. This past April, Bed Bath & Beyond agreed to acquire the newly restructured TCS for $150 million.

"The Bed Bath & Beyond–TCS deal highlights the significant role that real estate can play in complex M&A transactions and equity investment financings," said A&G Principal Jacob Czarnick, a 25-year investment banking veteran. "At A&G, we take pride in helping clients enter the market with a cleaner, more compelling real estate story and a stronger edge with investors."

A&G executives will be engaging with retailers, investors, lenders and reporters/editors at ICSC Las Vegas (May 17-19, 2026) on a range of topics, including portfolio optimization, real estate sales, and profit improvement strategies. To connect with our team, email [email protected] or stop by Booth 4450S South Hall.

About A&G
A&G Real Estate Partners is a team of commercial real estate experts that derives the highest possible value for clients' real estate assets and leases. A&G brings a proven track record in portfolio-optimization, real estate sales, due diligence, valuations, and strategic growth consulting in virtually every real estate sector. Known for their integrity, market intelligence, and exceptional results, A&G has advised the nation's leading brands in both healthy and distressed situations. Since 2012, the firm has sold over $13 billion in properties and leases and negotiated over $12 billion in occupancy-cost savings for clients. For more information, visit: www.agrep.com.

Media Contacts: At Jaffe Communications, Elisa Krantz, (908) 789-0700, [email protected].

SOURCE A&G Real Estate Partners