MIAMI—Opportunities and obstacles. That's the story in the retail leasing market in Florida and beyond. We caught up with Carrie Smith, regional managing partner with Franklin Street's Jacksonville office, to get her take on both.

In part two of this exclusive interview, Smith discusses opportunities, obstacles—and how she overcomes them. In case you missed it, you can still read part one of our interview, “Retail Leasing Trends You Need to Know About.”

GlobeSt.com: How do you approach retail real estate leasing transactions? And is it any different than how other firms approach it?

Smith: Our approach is to help our clients through the deal process using our knowledge and expertise in the retail sector, and through the support of our many other specialized divisions, such as management and insurance services. Always approaching transactions from the owner's perspective, Franklin Street has a diverse history that we feel makes the transaction process smoother.  

GlobeSt.com: What are your best practices for handling retail real estate leasing transactions?

Smith: 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. 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.

GlobeSt.com: What are biggest challenges that you've come across handling retail real estate leasing transactions? Can you give me specific examples from deals?

Smith: There are a number of challenges to overcome during the transaction, and depending on the nature of the deal it can be anything from the economics to something as simple as the length of the term. If I had to choose the top though, we find the hardest items to come to terms on are usually related to ongoing co-tenancy requirements and inducement contingencies.

GlobeSt.com: How do you overcome those obstacles?

Smith: In order to overcome obstacles, we must provide as much knowledge as possible to get both sides to come to an amendable solution. The history of an area, rent and sales comparables, as well as previous transactions, can be helpful for both sides to come to a confident decision.

GlobeSt.com: What trends have you noticed in handling retail real estate leasing transactions?

Smith: While transaction volume is up, we can see the approval process with most retailers takes significantly more time. There is a number of decision makers involved in the real estate decision making process now, thus lengthening the time to get a lease negotiated and signed. Most retailers want to have all their boxes checked before signing a deal, which many times includes involving the construction arm's take on the build-out costs, or an architect doing a preliminary floor plan.

GlobeSt.com: How do you expect the retail real estate market to change in 2014 and how will that impact how leasing transactions happen?

Smith: In 2014, I think retailers will attempt to expand as much as they did in 2013, but that quality retail space won't be as easy to find. Additionally, it will force retailers get more creative with seeking out opportunities in areas that have a high barrier to entry. This will have a positive effect on class B centers as well as the smaller developers who look for retailers to develop for in key markets.