The idea of department stores selling some of their old, valuable real estate is beginning to permeate the industry. Many investors in Macy’s are encouraging them to take part for the short-term benefits. Macy’s owns or has a ground lease on around two-thirds of its 823 stores. There three most heralded stores, located in New York, Chicago, and San Francisco, are valued at nearly $7 billion. Macy’s executives are hesitant to do sale-lease back deals because they are often not advisable in the long-term. These deals allow for less flexibility to change the space as well as costly rent payments that mimic debt obligations. Macy’s appears to be looking to form a type of joint venture similar to their sale of credit-card receivables to Citigroup in 2005. The company has sold a few stores where the value of the real estate was much greater than the value of the retail operation.