In the retail world, getting deals done means finding the right strategy for the right client. Although the most influential factor in a transaction often comes down to the success of the area or the specific shopping center, Carrie Smith, a regional managing partner with Franklin Street, says class A retail space is increasingly hard to come by and tenants will bid aggressively to secure the right location.
“The best strategy for handling retail leasing transactions is to not only understand your client’s needs but also the requirements of the opposing side,” Smith says. “In any transactions, there are going to be certain things that each side won’t negotiate. If you can understand those items early on, then the process typically will go smoother.”
Indeed, Patrick Breslin, an executive VP at Studley, says understanding the complete picture helps when it comes to details like finding a space that requires the minimum construction cost. His rule: always be clear about what the tenant wants, the landlord can provide and what the expectations are. Still, he points to several challenges that require skill to navigate.
“Competition, especially for super-premium space, is often a challenge,” Breslin says. “I worked on a deal for months, worked with the landlord to negotiate the asking rents and then at the last minute two additional offers were made. In this case, the landlord can simply choose the highest asking rent from the best tenant.” Download PDF