More national chains close, but County retail vacancy rate low

Although more national brands continue to close their doors, Clark County’s retail vacancy rate remains low.

Vancouver’s two Joann Fabric and Crafts stores are shuttering, along with all of the company’s nearly 800 stores nationwide. The company joins the growing number of national chains struggling amid economic uncertainties and the rise of online shopping.

Joann filed for bankruptcy earlier this year, seeking to “maximize the value of its business” before going up for sale, according to a January news release.

“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” Joann Interim CEO Michael Prendergast said at the time.

Meanwhile, clothing retailers Macy’s and Kohl’s announced plans to shutter swaths of stores across the country. So far, Vancouver locations have escaped the closure lists.

Another mall staple, Forever 21, plans to close all of its roughly 350 stores nationwide by May 1, according to national media reports. The company filed bankruptcy earlier this year.

“We have been unable to find a sustainable path forward, given competition from foreign fast fashion companies,” said Brad Sell, chief financial officer at F21 OpCo, the company governing Forever 21, in the company’s bankruptcy announcement.

Sell said fast fashion companies have been able to take advantage of the de minimis exemption, a federal law allowing single shipments under $800 that are bound for American businesses and consumers to enter the U.S. duty-free.

Sell said this has undercut the company’s pricing and margin.

He also pointed to rising costs, economic challenges and evolving customer trends.

Both Big Lots and Party City went out of business and closed all of their Clark County locations last year.

Fast Company reported Big Lots, however, was spared after North Carolina-based Variety Wholesalers bought about 200 locations from Big Lots’ liquidator at the end of 2024. The company is set to open about 80 of those stores this year. It’s not clear where those locations will be.

While these closures may seem like bad news, Clark County and Vancouver’s retail vacancy rates are down compared with last year.

Data from real estate company Kidder Matthews puts Clark County’s retail vacancy rate at 2.4 percent in the first quarter of 2025, down from 3.6 percent in the first quarter of 2024. Vancouver’s rate was 2.5 percent in the first quarter, down from 3.8 percent in the first quarter of 2024.

The entire Portland metro area’s retail vacancy rate for the first quarter of 2025 was 4.3 percent.

“We have had our share of bankruptcies over the years, including locally Sports Authority, Tuesday Morning and Rue 21,” said Mark Osborne, chief real estate officer at Vancouver-based commercial real estate company C.E. John.

Osborne said all the bankruptcies led to new regional and national tenants with strong financials and long-term stability.

“I would say we come out of most of our retailers’ bankruptcies much stronger and poised for great longevity and success,” he said.

C.E. John owns 3 million square feet of commercial real estate in Washington and Oregon, including Hazel Dell Marketplace and Salmon Creek Plaza.

Osborne said retail space in Clark County is in high demand.

“The picture for retail isn’t doom and gloom. It is actually bright,” Osborne said.

Landlords focusing on what he called “tried-and-true” brands are finding stability, he said.

“People love a discount, and people still love to have the personal and hands-on shopping experience of trying things on and seeing them in person,” Osborne said.

Sarah Wolf: 360-735-4513; sarah.wolf@columbian.com