Landlords are once again rethinking retail tenant strategy. Following the pandemic, daily needs tenants are not as in-demand as they once were. Instead, landlords are focused more on signing leases with experiential retailers.

"Before the pandemic, landlords wanted a grocery store or another store with a large lease that would drive foot traffic. Now, to the extent that people are doing more deliveries, that is changing the fundamental underwriting for landlords and their lenders," Jason Grinnell, a partner at Thompson Coburn, tells GlobeSt.com.

Now, landlords want to partner with retailers that are going to create a unique experience in the center. "There is a push for retailers that are more experiential and open areas where people can gather," says Grinnell. "I think that these things were starting off, but you need to have a reason to draw people to your center. More shopping centers are devoting square footage for fulfillment purposes where customers pick up packages rather than having it delivered to their homes. The question is: how do you get people to stick around."

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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 GlobeSt.com 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.