But the store closures also provided redevelopment and re-leasing opportunities that many of these landlords need in crowded markets, observers say.

Kimco Realty's same-center net operating income grew by 3 percent last year, despite store closures. “Investment in technology has enabled us to be more proactive in monitoring and quickly addressing existing and potential vacancies, reducing downtime and driving faster rent-commencement fees,” CEO Conor Flynn told investors. Even so, bankruptcies pushed small-shop occupancy in the company’s portfolio down 180 basis points in 2019, to 89.3 percent. Kimco is replacing those tenants with more service-oriented concepts, Flynn says. “We see our customer continue to gravitate towards convenience, service, experience and value,” he said. “Not all retailers will successfully make the pivot necessary to service the demands of today’s consumer.”

Regency Centers' same-center NOI increased by 2.1 percent in 2019. Rental rates across its 56 million-square-foot portfolio rose by an average of 11.3 percent. Small-shop occupancy was at 91.3 percent — a 30-basis-point decline year on year — driven primarily by Dressbarn store closures. “Our teams have been diligently working on backfilling these locations and currently have active negotiations or signed leases on all the recaptured spaces,” COO Jim Thompson told investors.

Brixmor's 400 retail centers, same-center NOI rose by 3.4 percent last year, thanks to a 10.9 percent rental-rate increase. NOI would have been 20 basis points higher were it not for the Kmart and Sears stores that shuttered at Brixmor’s properties. But as of Feb. 1, the landlord had gained control of all 11 of these units and was busy refilling them, President and CEO Jim Taylor told investors. “As you replace a tired old Kmart with a specialty grocer, a great fitness use or maybe a value retailer,” he said, “you see an appreciable pickup in the small-shop rent.”