How you can face the challenges of Formula One Retail Ordinances and successfully lease properties.
While leasing a property can be difficult enough on its own, new Formula One Retail Ordinances make this task even more difficult. These ordinances require new leases to be cleared by the city in an effort to protect local and small businesses. Here’s what you need to know about addressing the challenges introduced by Formula One Retail Ordinances.
First, it’s important to understand that the use of these ordinances is still very rare. Formula One and similar ordinances are uncommon in Southern California and have only really popped up in Downtown Manhattan Beach, San Francisco, and Coronado. However, experts note that these types of ordinances may become more popular in the future as smaller towns look to preserve their charm.
So, what do Formula One Ordinances aim to do? According to these ordinances, tenants must have their lease approved by the city. To get city approval, the tenant must have ten or fewer retail locations. Once the city approves a tenant’s lease, the tenant can go on to open additional retail locations, but they must do so in the city first.
With these ordinances favoring smaller brands and local businesses, it is more difficult for larger corporations to open locations with certain cities. However, these regulations are in line with recent consumer shifts. Now, consumers make an effort to support independent retailers and businesses that align with their personal values. With many customers turning away from major, nationally-based corporations, cities are making an effort to help these smaller brands thrive.
This is what you need to know about leasing buildings with Formula One Retail Ordinances. Want to stay on top of the latest commercial real estate news and trends? Then contact the experts at California Commercial Realty Advisors, Inc. Your commercial realty advisors are eager to assist you with all your real estate needs today.