Some REITs have already told CNBC they plan to redevelop existing Toys R Us locations to fit a handful of smaller companies once the liquidation process is complete. Urban Edge Properties, a spinoff from Vornado, which played a role in acquiring Toys R Us in 2015, has a larger percentage of exposure to the retailer with nine locations in its portfolio of only 90 centers. REITs including Simon (13 small-format locations at its outlets), Kimco (24 stores), Brixmor (12 stores), Weingarten (four stores) and DDR (20 stores) own a handful of shops, while the remainder is owned directly by the toy retailer, securities filings show. locations are leased back to a separate entity created by the company known as Toys R Us Property Co., or Propco. But REIT stocks have taken a beating on the fallout, with investors looking for ways to trade on the news. Only a small percentage of buildings occupied by Toys R Us are owned by U.S. Toys R Us' departure could spur some of these businesses to grow again, if the price is right. 'This is not going to be a cyclical change in our occupancy expenses, but a permanent lowering of the cost of our real estate.' Schultz said he's seen an 'abundance of empty storefronts across the country,' predicting that rents would fall further. Starbucks co-founder and Executive Chairman Howard Schultz made a similar comment late last month when asked about the coffee giant's U.S. More recently, though, some companies have said they will be willing to open more stores once rents stabilize. Even Target and Kohl's are focused more on opening smaller-format stores. Retailers that tend to occupy more space along shopping centers today include Dick's Sporting Goods, Big Lots, Party City and Best Buy - and these retailers aren't adding as many stores as they once were. Toys R Us' moves are viewed as further dragging down the reputation of U.S. The retail real estate industry has had its share of departures by key tenants in the past, including Circuit City, Sports Authority and RadioShack. 'More bankruptcies is putting further pressure on big box market rents.' Still, many of the Toys R Us and Babies R Us locations on the chopping block are more than 40,000 square feet, some are more than 65,000, and this is 'problematic as the list of retailers seeking that is short,' Green Street wrote. In the case of Toys R Us, they added, there's an opportunity for real estate owners to secure new tenants paying higher rents per square foot, and that would mean a much better outcome. 'An important distinction between Toys and other recent bankruptcies is that many of Toys' leases are well-below market - a silver lining for landlords,' analysts from Green Street Advisors wrote in a note to clients. Some are betting on being able to find more profitable uses, while others will be left scrambling to find replacements.

The abrupt shuttering of the toy chain spells good news and bad news for landlords. Toys R Us is planning to close or sell more than 800 stores across the U.S., leaving a surplus of unoccupied real estate on the market. Real estate analysts suggest the closures could cause market rents to drop.

Toys R Us store closures will leave a surplus of unoccupied real estate on the market at a time when few retailers are enlarging their physical footprints.

Which toys r us locations are closing