How landlords are repurposing vacant retail locations.
It’s no secret the retail real estate sector has been hit hard this year. With several major brands closing their doors, 2019 has seen more store closures than any year in recent history. This major shift in the retail sector has left many landlords to lose money every day as they manage their empty spaces. To overcome this weakness in the market, many landlords are finding creative ways to make use of their vacant properties. Your commercial realty advisors report on some of the smart ways that landlords are adapting.
- Shorter Leases
One way that landlords are adapting to the changing market is by accepting shorter lease terms that make it easier to close stores if necessary. Rather than the five- or ten-year leases common in the retail sector, landlords are now offering tenants more flexible lease agreements to entice them to rent out space at least temporarily. While this shift is not a great long-term solution to retail closures, this will help landlords keep vacancy rates down for now.
- Unconventional Tenants
As landlords come to terms with the instability of the retail market, many are looking to rent to less-conventional tenants. For instance, many landlords are marketing former retail locations as office spaces, restaurant spots, grocers, entertainment venues, and even churches. Owners of larger retail spaces, such as malls, are converting their property into multi-use sites that combine living, retail, entertainment, and dining spaces. Finally, other landlords are completely demolishing struggling retail spaces and replacing them with industrial structures.
This is what your commercial realty advisors have to report on the ways that landlords are getting creative with their vacant retail properties. Interested in staying up to date with the latest real estate news? If so, then contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is eager to assist you with all your real estate needs today.