Richard Rizika Richard Rizika

Co-tenancy lease restrictions need to evolve alongside the retail market. The restriction has been common for decades as a way for retail tenants to ensure other tenants within the center aren’t a conflict or excessive competition. Today, however, consumers are using retail differently, and curating a unique tenant mix is integral to driving foot traffic and sales at a center. Often times, these lease provisions work in opposition to both landlord and tenant goals.

“There are a lot of use restrictions that were designed 20 to 30 years ago that were intended to create a co-tenancy that was brand relevant,” Richard Rizika of Beta Retail, a company that works with retail landlords to implement marking and technology solutions, tells “If I was a soft goods merchant, I would want to keep certain uses out that I didn’t think were consistent. A typical scenario would be an area of congregation, like entertainment or a fitness facility, where people would be staying a long time and wouldn’t be expected to shop for soft goods. Those uses could erode the parking area that would otherwise be used for a soft goods retailer.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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