The era of retail tenants ruling the leasing market appears to have passed, retail real estate brokers say. While retailers in certain product categories and in smaller markets may still be pursuing rent concessions when negotiating lease renewals, in much of the nation negotiating tactics have returned to the status quo.
In addition to the general improvement in leasing fundamentals, the lack of new retail development over the past few years has made existing space more valuable, says John Bemis, executive vice president and retail market lead for the Southeast with real estate services firm Jones Lang LaSalle. That has meant that retailers with access to good locations don’t want to lose them when their leases come up for renewal.
