Ask the Expert: What sorts of tenants are retail landlords looking for right now?
“In the retail landscape today, most owners are risk-adverse and looking for financially stable tenants. Credit strength is a huge determining factor in deciding the metrics for deals and what type of concessions are made. National tenants with corporate backing are the ideal scenario for an owner. This secures their ability to compress their cap rate for one and go after other national tenants.
While financials are a large, if not the most important, factor in determining a ‘good deal,’ the co-tenancy mix and compatibility is the other side to this coin. You can have the strongest tenant in the world, but it also must coexist well and compliment the other uses. Complimentary uses and experience-based retailers are the ideal mix as they can feed and enhance one another’s sales. If the analogy is PB&J, strength of credit is the ‘Peanut Butter’ and compatibility with other tenants is the ‘Jam.’ With those two components, you greatly increase the chances for success.”
Senior Director, Landlord Services
813.839.7300 x 0382