How retailers can overcome restrictive covenants in shopping centers: Part 1
We all know that the retail landscape is changing. While the retail apocalypse is a myth, there is, in fact, an evolution taking place. This evolution extends beyond the headlines and is having a real impact on the ground. Multi-tenant property owners, national operators, and emerging non-traditional businesses are facing new challenges in their day-to-day operations. Big-box retailers are closing, leaving empty spaces behind. New consumer trends are taking shape, catching many off-guard. Live-work-play is a popular trend among consumers and spaces are shape-shifting to meet that demand. New non-traditional operators with high growth potential are emerging but are facing challenges in securing space within shopping centers. One of the biggest challenges many landlords are facing is the restrictive covenants present in retail centers that exclude “non-traditional” tenants such as fitness and family entertainment centers. These covenants are now restricting opportunities for emerging non-traditional operators to occupy ”big-box” space left vacant by anchor and junior anchor retailers.