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It’s easy enough to find a new tenant for a simple warehouse but much harder to re-lease a facility purpose-built to Amazon’s exacting specifications.

“The debt feature is lease payments you get from the underlying properties, and the equity feature is the right to re-lease or sell those properties.”

Most companies said they expect declines to moderate later in the year as they re-lease space left behind by failed stores, but owners of lower-end properties will be more challenged, according to Busch.

“Banks take assets. Once the lease return takes place, they either sell it or they re-lease it. And in this case they have a five-year old asset and they have chosen to sell them.”

The idea was a gradual renovation, allowing tenants to re-lease a few at a time as vacant units were refurbished, Gray said.