LOS ANGELES—A few years ago, retail tenants had the clear advantage when negotiating a lease, but as vacancy rates drop and fewer retail properties are available, landlords in some markets are gaining the upper hand. This is according to Wilson Retail president Scott Burns, who will be at next week's ICSC Western Division Conference. As he prepares for the big event, we sat down with him to talk about leasing trends from the tenant's perspective. Here is his view from the negotiating table:

GlobeSt.com: What are your goals and expectations for the ICSC Western Division conference? 

Scott Burns: In addition to deal making and presenting our portfolio of retail properties and retailers, our goal at the ICSC Western Division conference is to connect with as many colleagues, clients and friends in order to stay on top of the trends, new retailers and other changes that influence the retail shopping center industry.

GlobeSt.com: What is key to determining a premier location for a retailer?

Burns: Each retailer has its own set of criteria that depends on their desired surroundings.  Some will only locate in regional retail hubs while others prefer to be in the heart of a neighborhood. However, most require high traffic counts, convenient access to public transportation, abundance of available parking and strong area demographics. The physical plant continues to be a critical piece of the puzzle in that retailers desire well-maintained centers that offer the best possible presence to the area's residents.

GlobeSt.com: How can a broker ensure they secured the best lease terms for a retailer in today's volatile economy?

Burns: By selling the strengths of the retailers they represent is one key way that we are able to secure the best lease terms for our retailer clients. The market is competitive so we go out of our way to educate prospective owners on the benefits that our tenants bring to the table, which include the number of shoppers they expect to draw, the quality of their build-out, success of nearby stores, the other major property owners who they have leased from and their credit worthiness.

GlobeSt.com: Who hold the upper hand in today's retail market—the landlord or tenant? 

Burns: The answer would have been clear two to three years ago—the tenant. The answer, today, depends on where the property is located. We are finding that in more competitive urban and strong suburban markets where retailer demand is high and property owners have multiple choices, the landlord has the advantage. In markets that are still recovering and vacancy rates remain higher, retailers are able to drive more favorable terms. 

GlobeSt.com: How will the Southern California retailer market differ in 2015 from 2014?

Burns: Brick-and-mortar retailers will continue to adapt to changes in consumer shopping behavior through further downsizing and the development of more specialized offerings/concepts. Retailers with mature portfolios of stores will continue to focus on filling the gaps in their coverage and, in order to secure sites, will need to be more creative, which may be occupying non-prototype space, locating in vertical environments or building ground up.  We also see the frenzied expansion of sustainable restaurant concepts continuing along with more the further strength and dominance of the dollar stores.       

GlobeSt.com: How does Wilson Retail Group represent landlords and tenants without it being a conflict of interest?

Burns: When began our tenant representative group in 2009, we became a more valuable resource to our landlords. Representing retailers broadened our exposure to new markets, retail industry trends, multi-market rent comps, different types of deal structures and a better understanding of how retailers evaluate real estate, both physically and financially. With over 24 years of developed landlord relationships, we are able to better problem solve and work through issues with our retailers when we facilitate new leases within our listing portfolio.