Party Alignment Is a Must for Area Revitalization

Scott Kaplan, JLL EVP of retail brokerage.

SAN DIEGO—Why is it important for a cohesive relationship between cities, retailers and shopping center landlords? That is one of the questions we recently asked Scott Kaplan , JLL EVP of retail brokerage, in preparation for this week’s ICSC Western Division conference here in San Diego. GlobeSt.com: How has the relationship between cities/public sector, retailers and shopping center/landlords over the years? Scott Kaplan: All retail leasing transactions have three parties—city/public sector, tenant and landlord/developer. Cities have more and more fully embraced their need to be involved in retail real estate. City involvement includes having representatives at shopping center conventions, educated retailers on strengths of the city, actively marketing shopping center lease opportunities and helping to move developments forward.  Cities have had a very hands-on approach when it comes to redevelopment as it makes an immediate impact of revitalizing an area. GlobeSt.com: Why is it important for a cohesive relationship between cities, retailers and shopping center landlords? Kaplan: If all three parties are not aligned it is difficult for a shopping center development or redevelopment to move through the process. The landlord/developer needs to understand what tenants need and city will permit and all parties need to understand the other’s goals and desires, and trust that it is the best outcome for a site. In certain cases this could mean turning a shopping center into a mixed use development that still has retail as focal point but contains other uses as well to create the right environment and continue making the location relevant in an ever changing market. GlobeSt.com: What type of functions can a city play in the success of a retailer or shopping center? Kaplan: Cities can help in many ways.  It can be as simple as market date on consumers. Cities can also help a tenant open for business sooner by expediting the approval process. For the right opportunity, cities can also help economically with grants for job creation, reduce fees and sales tax sharing. GlobeSt.com: Can you provide a few examples where a shopping center was more successful because of the relationship between the city/public sector, retailers and landlord/developer? Kaplan: Under the leadership of Rod Bartlam and Joann Lombardo with support of City Council, Chino Hills helped Hobby Lobby work though the approval process in getting the retailer open for business within the city. In working with the land owner Claremont City Manager along with City Council and Staff have helped move forward development of a Chrysler dealership and a Hampton Inn. GlobeSt.com: How will the role between cities, retailers and shopping center landlords/developer help during an eventual downturn in the coming years? Kaplan: With uncertainty in the economy the relationship between cities, retailers and shopping center landlords/developers will become even more important.  The cities’ tools to move transactions forward will become a bigger focus as tenants and landlords will be looking for certainty.