The retail leasing market is in the throes of evolution – find out what to expect, here.
1. Little to no rental growth outside of prime locations.
2. More flexibility in lease deals for tenants, including sales-leveraged deals, shorter terms and more options.
3. Increase in the number of holdover leases in shopping centres.
4. Greater incentives in shopping centres.
5. Demand, beyond prime will certainly remain flat however that does present innovative opportunities for smaller retailers if they can establish their own market. If you don't need or can't leverage hundreds or thousands in walk-past trade then some attractive deals will exist, but you'll need to know how you will attract customers.
Lee Trevena is the CEO of LeaseEagle, a property management software solution which assists in managing retail leases.