Formula Retail Ordinances have sprung up in select markets, andthey can create an extra layer of challenges when leasing retailassets. In an effort to protect local and small businesses, newleases require planning clearance through the city. Brokerage firmBeta recently completed leasing Malibu Village, a50,000-square-foot retail center in Malibu, which has thisordinance within its city limits.

"To get the lease approved by the city, a tenant can sign alease if they have 10 or under retail locations," JamesKeefe, senior account manager at Beta,tells GlobeSt.com. "Once they have signed the lease they can openup additional stores over 10 but they must open in Malibu firstbefore going over 10. The process then becomes more challenging dueto the criteria as the tenants you begin to work with are lessfamiliar with the leasing process so there is a more hands-onapproach."