Last month, Sports Authority Inc.’s bankruptcy sent shock and awe across the sporting-goods industry, with companies noting that it had both opportunities and challenges. Sports Authority was at one time the largest sporting-goods retailer in America. Sports Authority was founded right in the South Florida region and has had a strong presence here. Sports Authority’s original store was opened back in 1987. The first store was located in the Lakes Mall in Lauderdale Lakes. Kmart owned the store at one time and then later spun off to merge with Gart Sports in 2003. Paco Diaz, senior VP of retail properties for CBRE in South Florida, stated that most local Sports Authority stores range from 40,000 to 45,000 square feet and they’re generally in good locations. Dick Sporting Good’s Chief Executive Officer Edward Stack had stated on a conference call that his company would look at Sports Authority leases to see which ones would make sense. “We’re going to be very aggressive to go after that displaced market share.”
With Sports Authority bankrupt, there will be a smaller number of stores to sell to. The Sports Authority locations in the South Florida region are located at the following locations:
- Aventura: 18499 Biscayne Blvd.
- Boca Raton: 20851 State Road 7
- Boynton Beach: 363 N. Congress Ave.
- Coral Springs: 9188 Wiles Road
- Dadeland Station: 8364 S. Dixie Highway
- Deerfield Beach: 3810 W. Hillsboro Blvd.
- Delray Beach: 510 Linton Blvd.
- Doral: 10688 N.W. 12th Street
- Fort Lauderdale: 1901 N. Federal Highway
- Hialeah: 3895 W. 20th Ave.
- Hollywood: 4100 Oakwood Blvd.
- Homestead: 2611 N.E. 10th Court
- Jupiter: 1560 W. Indiantown Road
- Kendall: 11910 S.W. 88th Street
- Mid-Town Miami: 3401 N. Miami Ave.
- Palm Beach Gardens: 3350 Northlake Blvd.
- Pembroke Pines: 11140 Pines Blvd.
- Pompano Beach: 2421 N. Federal Highway
- Sunrise/Sawgrass Mills: 12801 W. Sunrise Blvd.
- Sweetwater/Dolphin Mall: 11521 N.W. 12th Street
- Wellington: 820 S. State Road 7
- Westchester: 8571 Coral Way
- West Palm Beach: 1875 Palm Beach Lakes Blvd.
Despite the Chapter 11 filing, the company has vowed to emerge again. Commercial real estate developers (CRE) are actually looking forward to the space. For CRE’s, this will be a time for opportunity. Joe Luzinski, senior managing director for the Miami office of DSI stated to BizJournals that the Chapter 11 filing gives Sports Authority the power to exit leases or negotiate with landlords to rewrite leases with more favorable rates. Generally, retailers look to close stores that either have low sales or high expenses, including rent, Luzinski said. “If it’s an under-valued lease, you might keep it even if revenue is not up to par,” Luzinski also said. “But if it’s over-market lease and you have 30 years left on the lease, bankruptcy court allows you to get out of that lease and close that store.” Luzinski said to BizJournals that Sports Authority is more likely it would sell in concentrated geographic markets because it’s easier to have stores in the same area and provide them a support system if the company chooses to sell locations,