Retail

Regional malls to high-street storefronts: percentage rent, co-tenancy clauses, and anchor repositioning.

Property Types

  • Regional / super-regional mall
  • Power centre (big-box anchored)
  • Neighbourhood strip mall
  • High street / urban storefront
  • Pad site (outparcel)
  • Lifestyle centre / open-air mixed-use

Physical Attributes

  • Anchor, inline, and pad site tenant configuration
  • Storefront frontage, signage visibility, and pylon rights
  • Co-tenancy clause triggers tied to anchor occupancy thresholds
  • Parking ratio (spaces per 1,000 SF of GLA) and surface vs structured
  • Loading dock access, rear service corridors, and trash enclosures

Value-Add

  • Anchor replacement after dark-store vacancy or lease expiry
  • Food and beverage conversion of underperforming inline space
  • Experiential tenant programming (entertainment, fitness, medical)
  • Outparcel densification via pad site development or ground lease
  • Common area and facade refresh to attract higher-credit tenants

Appraisal Approach

  • Income approach with percentage rent and overage rent analysis
  • Sales comparison for single-tenant pad sites and small strip retail
  • Anchor tenant credit risk and co-tenancy exposure in DCF scenarios
  • Below-the-line CAM reconciliation surplus/deficit treatment

Management

  • Lease administration: CAM reconciliation, percentage rent audits
  • Tenant relations and merchandising mix curation
  • Parking lot maintenance, snow removal, and traffic flow management
  • Marketing fund administration and tenant event programming

Strategic Concepts

  • Omnichannel retail impact: click-and-collect, showrooming, BOPIS
  • Dark store risk and co-tenancy cascade failure scenarios
  • ROFR/ROFO management on anchor spaces and outparcels
  • Grocery-anchored defensive positioning in downturns
  • Experiential tenant mix as a hedge against e-commerce disruption

Related topics

Percentage Rent in Retail Commercial LeasesCAM Charges and Expense Stops in Commercial LeasesGross Lease Structure in Commercial Real EstateTriple Net (NNN) Lease Structure in Commercial Real EstateRight of First Offer in CRE: ROFO vs. ROFRValue-Add CRE Investment StrategyNet Operating Income (NOI) in Commercial Real Estate
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