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The Balance of Mixed-Use Retail

December 9, 2016

Most folks, understandably, do not walk down a mixed-use space and think about the careful balance it took to make the complex use of retail, multifamily, and office, a successful mixed-use space.  Not all real estate properties are the same, a retail space where customer service is key, will commonly be accompanied by a percent rent clause in the lease. This clause creates for a scenario where the rent received by the landlord is directly affected by the sales and success of the retailer, this of course involves much more interaction with that tenant than would be involved with a tenant leasing an office space. An office lease typically would not require much landlord-tenant interaction over the life of the lease as the space is essentially a clean, standard box for individuals to come in and work, and conduct business typical of an office. Retailers need to take into consideration everything from ceiling height to traffic flow. All residents should be kept in mind, the synergy created from the multiple use of space surrounding an area should be pleasant to all. Multifamily tenants should be considered when looking at the location of bars, and restaurants as the noises and smells that accompany such properties could affect them directly. Balance, communication, tenant-relations, and proactivity are key to ensuring that everyone is receiving a positive experience, successful landlords, and professional property managers know this well.

Mixing It Up: Getting Mixed-Use Retail Right