Heading into 2023, company tenants in web lease transactions are on the lookout for a “true long-term companion,” says one trade insider.
“We’re on the lookout for a companion who’s supporting our enterprise and providing greater than only a property to lease,” says Sam Harmelech, VP of Actual Property and Affiliate Normal Counsel at Verano, talking to GlobeSt upfront of our web lease convention this spring.
Harmelech – who will be a part of different company tenants in a panel dialogue on what tenants worth in web lease partnerships – says funding in tenants’ buildouts via a tenant enchancment package deal and different key incentives is vital.
“We’re on the lookout for somebody that can be equitable with regard to sharing upkeep obligations, in addition to working with us on contingencies/free lease for zoning and development permits to make sure we are able to really function the enterprise there and get open,” he says.
Harmelech says he expects new retailer openings to sluggish within the total retail sector in 2023, and that rents will both plateau or drop whereas cap charges proceed to rise.
“Because the financial system begins to sluggish and the Fed tries to maintain inflation beneath wraps, we’ll all be monitoring shopper tendencies as that can influence the tempo of latest retailer openings, the place we’re opening new areas and the place cash is spent to enhance present retailer efficiency,” he says. “We should be aware of the anticipated slowdown in 2023.”
Test again quickly for extra insights from Sam Harmelech and different panelists at GlobeSt’s upcoming spring web lease convention.
