Despite Empty Big Boxes, Signs of Revival for Retailers on Rt. 10

The signs are hard to miss on Route 10 in Livingston: “Space for Rent” signs planted outside empty big boxes once home to familiar retail chains that went bust.

But there are signs of renewal too -- not only for the highway but also for the retailers who are choosing to open in Livingston.

Vacancies throughout much of the state are at a 10-year high, according to the annual survey by a New Jersey commercial real estate firm. Livingston’s retail strip on Route 10 is no exception. There’s the imminent closing of Pathmark and the market remains saturated with cavernous buildings that once housed Circuit City and Linens ‘N Things, analysts said.

But driving on the highway last Saturday presented what may signal a new reality. Hundreds of television fans flocked to see the at Wine Legend at The Village of Livingston. of “Jersey Shore” fame was just up the road at Costco, the giant wholesale warehouse.

“I believe there is some light at the end of the tunnel,” said Ron DeLuca, vice president of Brunelli & Co., the retail leasing broker that tracks vacancies in New Jersey.

Township officials are working to ease some of the restrictions. On Monday night, the township council approved a that could spur commercial development at the former Saturn site. That property has been zoned for both residential and commercial. Despite objections from neighbors, the council moved to end the split zoning and make it all commercial.

And the township’s Big Box Committee, after consulting with various experts, determined the township is no less attractive to major businesses than any other nearby town.

“I think overall it is improving,” said Larry Traub, Partner, G&S Investors.

G&S has presented plans for the , including expanding the loading dock and adding footage to the former Linens ‘n Things building. The plans are still under consideration by the Livingston Planning Board, which heard opposition to the proposal this past Tuesday night. The plans will come under consideration again on April 5.

Traub expects to fill the Livingston property with a national or regional retailer similar to the tenants already in the G&S portfolio, such as Costco, Target, Marshalls, Loews Theaters, Super Stop & Shop, and Home Depot. A supermarket is likely to fill one of the empty boxes, he said.

Route 10 is a strong retail corridor that has long appealed to major national and retail businesses, Traub said. There are signs that businesses are once again looking to expand and banks are more amenable to financing.

“Despite tough economic times, that location is a great location and will be for the next 20 years,” agreed Bernie Sensale, CEO of Fortunoff Backyard Store.

“You’re story of economic revival fits us to a ‘T,’ ” Sensale said. is back in business selling patio furniture after the famed retailer went out of business. It opened its 10th store in a Route 10 property empty since Barnes and Noble moved to the Livingston Mall.

Workers, meanwhile, are renovating the traffic circle site where Houlihan’s once did business. The vacated property will house , which plans to open in time to celebrate Cinco de Mayo.

“The more retailing you have, the stronger the area gets,” Traub said.

But bankruptcies still cast a shadow over these positive trends. in The Village of Livingston shopping center will close in April if approved by a bankruptcy court, a spokesman said. The Livingston grocery is among seven Pathmark’s and three A&P groceries in New Jersey identified in the latest round of closings by the Great Atlantic & Pacific Tea Co. -- the Montvale-based chain that filed for Chapter 11 bankruptcy protection in December.

Livingston Mayor Rudy Fernandez believes the retail strip can weather this closure. “The BID (Business Improvement District) has worked very hard during this difficult economic climate to continue to attract businesses to Livingston, and the council has been working with local business owners and has proposed changes to certain zoning, facades and sign ordinances to help businesses succeed,” the mayor said.

Some of that will come into play next week, when, on March 9, town leaders hear technical reviews on plans for two former auto dealerships, Saturn and Chevrolet.

While its too soon to announce who will be moving into these empty big boxes, industry analysts say discounters – like Big Lots -- and dollar stores are driving the market as they continue to fill vacant stores in much of the state.