Excerpted from Shopping Center Business October 2017 issue.
Reid Mason, director of Franklin Street’s Atlanta office, is currently leasing a new development in the Atlanta area on behalf of the landlord. Mason says that quick-service restaurant (QSR) concepts are making up roughly 80 percent of interest in the project, and that some of his other developer clients are targeting chef-driven concepts, which is an about-face from leasing strategies in years past.
“In the past, landlords would’ve been hesitant because they don’t have the credit that a national QSR does, but over the past two years, chef-driven restaurants have become the anchors of these retail developments,” says Mason.
“Developers are trading credit for cool,” explains Monetha Cobb, managing director of Franklin Street’s Atlanta office. “Historically, owners wanted a restaurant tenant that they knew were good operators and were going to be in their development for the long haul with less concern being placed on local trends, but we’re seeing changes on that front.”