Why Lease Restrictions Challenge New Retail

Terry: “Restrictions exist, and directly negotiating special permission with existing tenants is the only option.”

TUSTIN, CA—As in any negotiation, how much you are going to concede regarding lease restrictions depends on who has the leverage, Coreland Cos.‘ VP of retail brokerage Ben Terry tells GlobeSt.com. In the new retail environment, heavily dominated by intensive parking uses like restaurants, gyms and services, a major pain point for owners and brokers alike has been issues associated with lease restrictions. Once an objective to protect a shopping center’s traditional retail mix, these limitations are no longer as relevant and often pose a dramatic roadblock for today’s deals.

We spoke with Terry about lease restrictions and how they are affecting lease negotiations in the retail environment.