MIAMI—What's the state of retail leasing? How has it changed and how will it change? GlobeSt.com caught up with Patrick Breslin, executive vice president in Studley's New York office, to get his take on these and other retail leasing strategy questions in this exclusive two-part interview.
GlobeSt.com: What is the state of retail leasing and how has it changed over the past 12 months?
Breslin: Retail leasing in the South East, particularly in markets like Miami and Atlanta which were hit hard by the 2008 recession, are now seeing a strong resurgence. Foreign investments are prevalent in South Beach and Miami, and are moving northward. DC is strong, Philadelphia is coming back and, overall, the Eastern Seaboard is doing well.
GlobeSt.com: Is it easier or more difficult to get retail leases done? How creative do you have to get these days?
Breslin: In New York, rents are much higher than they were five years ago and continue to climb. It is common for landlords to dictate how space can be used, but now landlords are more willing to make financial subsidies for build-outs. We're seeing landlords are willing to spend upfront if the tenant is strong.
GlobeSt.com: What trends are you seeing in retail leasing? For example, are certain product types hotter than others? Certain sizes trending generally? Tenants looking for particular features? Is it a tenant's market or a landlord's market?
Breslin: An interesting trend with smaller square foot leases is we're actually seeing a premium being placed on the asking rents. In contrast, a landlord is typically more willing to accept a lower per square foot price if the tenant is able to take a higher volume.
GlobeSt.com: What factors influence your strategy?
Breslin: Every client is unique and requires a customized real estate solution. I always say this job is like continuing education. You will always come across something you've never seen before. It's my job to be as creative as possible and advocate what is best for the tenant. There is more collaboration than ever before between the owners, tenants, brokers, architects and engineers.
Be sure to return this afternoon for part two of this EXCLUSIVE interview.
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