Atlanta skyline

ATLANTA—BOPUS—buy online and pick up at the store—technology is gaining momentum in the retail world. But it's also raising new challenge for both landlords and tenants.

GlobeSt.com caught up with Jeremy Cohen, an attorney at commercial real estate firm Hartman Simons, to discuss this trend in this exclusive interview. You can still read part one: What You Need to Know About BOPUS Right Now.

GlobeSt.com: How does BOPUS compare with curbside service in terms of advantages and disadvantages?

Cohen: Curbside service is one of the newer issues that has arisen and it causes additional discussions between retail tenants and landlords. With BOPUS, customers will simply park in the existing parking spaces in the center and, as a result, that does not create issues with the other tenants.

With curbside service, a tenant is granted one or more specifically-dedicated parking spaces, and that raises a whole host of issues. Dedicating spaces can create parking shortages for other tenants in the center.

Many tenants, as part of their form lease, expressly prohibit landlords from granting a tenant specifically-dedicated parking rights. There are also maintenance issues with respect to the signage for such spaces which must be discussed and resolved by the parties. Like drive-thrus at restaurants, curbside service allows the customer to remain in his or her car and many customers appreciate that.

GlobeSt.com: What liability issues arise with respect to curbside service or BOPUS?

Cohen: There aren't really additional liability concerns with BOPUS since it doesn't change how the customer enters and shops in the store. The same, however, cannot be said for curbside service as additional liability issues are created with the use of such service.

For example, what happens if the tenant's employee slips and falls when he is delivering product to a customer in the curbside space? Which party's insurance covers such injury?

Accidents in the common areas of a center are typically covered by the landlord's insurance, but in this case, the answer is not as clear since the employee was injured in the course of his or her employment, which would typically be covered by the tenant's insurance—just as if the employee had fallen and been injured in the store. As a result, these matters should be discussed during lease negotiations.

Some shopping centers are facing financial challenges. Find out why.

Atlanta skyline

ATLANTA—BOPUS—buy online and pick up at the store—technology is gaining momentum in the retail world. But it's also raising new challenge for both landlords and tenants.

GlobeSt.com caught up with Jeremy Cohen, an attorney at commercial real estate firm Hartman Simons, to discuss this trend in this exclusive interview. You can still read part one: What You Need to Know About BOPUS Right Now.

GlobeSt.com: How does BOPUS compare with curbside service in terms of advantages and disadvantages?

Cohen: Curbside service is one of the newer issues that has arisen and it causes additional discussions between retail tenants and landlords. With BOPUS, customers will simply park in the existing parking spaces in the center and, as a result, that does not create issues with the other tenants.

With curbside service, a tenant is granted one or more specifically-dedicated parking spaces, and that raises a whole host of issues. Dedicating spaces can create parking shortages for other tenants in the center.

Many tenants, as part of their form lease, expressly prohibit landlords from granting a tenant specifically-dedicated parking rights. There are also maintenance issues with respect to the signage for such spaces which must be discussed and resolved by the parties. Like drive-thrus at restaurants, curbside service allows the customer to remain in his or her car and many customers appreciate that.

GlobeSt.com: What liability issues arise with respect to curbside service or BOPUS?

Cohen: There aren't really additional liability concerns with BOPUS since it doesn't change how the customer enters and shops in the store. The same, however, cannot be said for curbside service as additional liability issues are created with the use of such service.

For example, what happens if the tenant's employee slips and falls when he is delivering product to a customer in the curbside space? Which party's insurance covers such injury?

Accidents in the common areas of a center are typically covered by the landlord's insurance, but in this case, the answer is not as clear since the employee was injured in the course of his or her employment, which would typically be covered by the tenant's insurance—just as if the employee had fallen and been injured in the store. As a result, these matters should be discussed during lease negotiations.

Some shopping centers are facing financial challenges. Find out why.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.