Protecting redevelopment opportunities in retail leases

National retail tenants normally desire that the site plan of the shopping center not change from what is initially attached as an exhibit to the lease, and that the height of the other buildings not exceed one story in height (and sometime not exceed the height of their premises); however, such a provision will severely limit the ability to reconfigure the shopping center to maintain, keep and create value in the event of future vacancies. In recent years, landlords have been able to save failing retail centers by adding multi-story residential and office uses, as well as restaurant pads, in areas that may not have been identified on the original site plan for the shopping center. Therefore, it is important for landlords to keep as much freedom as possible to reconfigure the shopping center.
Control over the site plan is important to the tenant for three main reasons: visibility, parking and access. The visibility of the premises from the adjacent roads and within the shopping center is a key factor for having a successful store. However, after evaluating the sight lines of the shopping center from the adjacent roads and factoring in any pylon signage being provided, the tenant might realize that there is only a limited area in front of the premises that has a material impact on such visibility.

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