Burlington and Ross Lead the Charge for Saks OFF 5TH Leases
The retail real estate market just got one of its clearest signals yet about where demand stands in 2026: off-price retailers are aggressively competing for the store leases being shed by Saks Global’s Chapter 11 bankruptcy.
Burlington Stores and Ross Dress for Less have emerged as the dominant bidders for Saks OFF 5TH locations, collectively offering $36.3 million for roughly half of the 59 leases that went on the auction block last month. The Saks Global debtors have asked U.S. Bankruptcy Court Judge Alfredo Perez in Houston to approve the lease sales.
22 Locations
Leases on Block
Back on Market
Vacancy Rate
The Numbers Tell the Story
Burlington, headquartered in New Jersey, submitted the largest bid at $22 million for 22 Saks OFF 5TH leases spanning 13 states, including Arizona, California, Florida, Georgia, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, South Carolina, and Texas. Ross Dress for Less bid on four locations—three in California and one in New Jersey.
Books-A-Million and Cavender’s rounded out the winning bidder pool, picking up leases in Florida, the Carolinas, and Texas. In total, A&G Real Estate Partners—the firm marketing the leases—circulated offerings to approximately 1,900 potential buyers and received 41 bids covering 31 of the 59 available locations.
Full-Line Saks Lease Draws $8.4M Bid
In a separate transaction, AD Tenant Holdings has offered $8.4 million to acquire the lease for a 90,000-square-foot Saks Fifth Avenue store at 2 Bala Plaza in Bala Cynwyd, Pennsylvania—just outside Philadelphia. That deal was negotiated directly between Saks Global’s management team and the buyer, not through A&G’s auction process. A&G reviewed the bid and confirmed it fell at the high end of its valuation range.
The Bala Cynwyd store was part of the first wave of full-line Saks closures announced in February, with 50 employees losing their jobs as of April 11. The aging Bala Plaza shopping center is currently being repositioned as a mixed-use “sanctuary for work, life and play” with hundreds of new residential units planned.
A Playbook That Keeps Working
This is a well-established pattern in retail real estate. Burlington in particular has built its growth strategy around scooping up bankruptcy-vacated leases from retailers including Bed Bath & Beyond (62 leases), Big Lots, Joann Fabrics (46 leases), and now Saks OFF 5TH. The company has more than doubled its store count over the past decade to nearly 1,200 locations, with plans to open 110 net new stores in 2026 alone.
Ross, TJ Maxx, and other off-price operators run a similar playbook. When legacy retailers contract, these value-driven concepts absorb the square footage—and the foot traffic that comes with it.
Why This Matters for Retail Landlords
The Saks OFF 5TH locations average roughly 28,000 square feet, which puts nearly 1.7 million square feet of space back on the market at a time when U.S. retail vacancy is hovering around 4%—historically tight. For shopping center owners, the takeaway is straightforward: quality space does not sit empty for long in this environment. Off-price tenants offer strong credit, reliable foot traffic, and a customer base that has proven resilient across economic cycles.
That said, 28 of the 59 Saks OFF 5TH leases still have no bidders. Landlords in secondary markets or with less desirable locations may face longer re-tenanting timelines—a reminder that not all retail real estate is created equal.
The Bigger Picture at Saks Global
Saks Global filed for Chapter 11 protection in January 2026 carrying approximately $3.4 billion in debt, much of it stemming from its $2.7 billion acquisition of the Neiman Marcus Group in 2024. The company has moved aggressively to shrink its physical footprint: closing nearly all 59 Saks OFF 5TH stores, all five Neiman Marcus Last Call locations, and—as of last week—announcing a second wave of 15 additional full-line store closures (12 Saks Fifth Avenue and 3 Neiman Marcus).
When the dust settles, Saks Global expects to operate just 13 Saks Fifth Avenue stores, 32 Neiman Marcus locations, and the Bergdorf Goodman flagship in New York City. Closing sales at the second-round locations begin today, March 13.
- Burlington bid $22M for 22 leases; Ross, Books-A-Million, and Cavender’s also won bids—31 of 59 locations have buyers
- AD Tenant Holdings is paying $8.4M for the 90,000 SF Saks Fifth Avenue lease outside Philly
- Off-price retailers continue to be the dominant backfill tenant for bankrupt retail boxes
- 28 of 59 leases remain without bidders—location quality is the deciding factor
- Saks Global will operate just 13 Saks, 32 Neiman Marcus, and Bergdorf Goodman post-restructuring
Bottom Line
The Saks Global restructuring is generating one of the largest lease disposition events in recent retail history. For off-price retailers, it’s a growth opportunity. For landlords, it’s a test of market strength—and so far, the market is passing. With Burlington, Ross, and other tenants stepping up with real dollars for these spaces, the message to shopping center owners is clear: if your location and center are strong, there is no shortage of demand.
Sources & Citations
- CoStar News — “Burlington, Ross Among Bidders Offering $36.3 Million for Half of Saks Off 5th Leases,” March 12, 2026. costar.com
- ABC News / Associated Press — “Saks Global to Shutter 15 More Department Stores in Bankruptcy Restructuring,” March 6, 2026. abcnews.com
- Retail Dive — “Saks Global Announces 15 More Store Closures, Expands Vendor Base to 500,” March 7, 2026. retaildive.com
- The Philadelphia Inquirer — “Saks Fifth Avenue in Bala Cynwyd Is Closing,” February 10, 2026. inquirer.com
- Retail TouchPoints — “Saks Off 5th, Last Call Stores Arrive on the Auction Block as Saks Global Shifts Focus to Full-Price,” January 30, 2026. retailtouchpoints.com
- U.S. Bankruptcy Court, S.D. Texas — Case filings, Saks Global Enterprises LLC, January 2026–present.
