With the race to attract new retail tenants becoming fiercer, many landlords including the King of Prussia Town Center developer JBG Companies are coming up with new incentives to get the best retailers, generate buzz, and create foot traffic to their developments, writes Suzette Parmley for Philly.com.
According to Tom Sebastian, senior vice president of development at JBG, landlords in today’s economy ”are sometimes required to be more creative in order to strike a deal with a desirable retailer.”
He named reverse built-to-suit as one example of this. This is where the landlord provides a tenant with a space and funds for them to construct the building around their own unique design and requirements.
This is especially popular with health clubs and movie theaters, which aim to have the architectural design structured to reflect their unique identity.
However, not everyone has to offer these extra incentives, according to Joseph Coradino, CEO of Pennsylvania Real Estate Investment Trust.
“For PREIT, we sort of see the opposite happening where we have more than one retailer interested in our space.” He also added that often PREIT is in the enviable position of being able to “evaluate which tenants are the right fit for our properties.”
Read more about the new incentives at Philly.com by clicking here.