Retail Tenants Pushing the Envelope

Retail Tenants Pushing the Envelope


September 20, 2012

By Carrie
Rossenfeld
for Globe St.

WALNUT CREEK, CA-It used to be that department-store and big-box retailers
ruled the shopping-center arena, but these days retailers
of much smaller size are calling the shots with their landlords, according to Hans
Lapping
, an attorney and partner with Miller Starr Regalia
here. Whether acting out of fear or a perceived advantage over developers,
smaller retailers are acting like mini anchors, often using each other for
mutual advantage by insisting on co-tenancies galore and making demands on
landlords. The result: Landlords' scrambling to meet these retailers' demands
in order to lease up shopping centers as the market recovers.

“The good news is that now there is deal flow again, as opposed to a couple
of years ago when retailers put the kibosh on some deals,” Lapping tells
GlobeSt.com. “While Target, Apple and other name-brand companies that frankly
appear to be recession proof continued to do deals, most retailers stayed on
the sidelines and didn't expand much, based on the economy as a whole.”

However, says Lapping, in the last three to four months, there has been in
increase in deal flow as retailers return to the marketplace and look to expand
their existing footprint. But they haven't forgotten their recent economic
woes. “There's still some trepidation on the part of the retailers. They don't
want to be the first one into a shopping center, and they don't want to be the
last one out.”

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