The use of co-tenancy lease restrictions has long been a common practice in retail real estate but today, there is a need to evolve in order to meet the demands of the consumers. Richard Rizika, Partner & Co-Founder of Beta Agency, recently spoke to Globe St where he said, “There are a lot of use restrictions that were designed 20 to 30 years ago that were intended to create a co-tenancy that was brand relevant. If I was a soft goods merchant, I would want to keep certain uses out that I didn’t think were consistent. A typical scenario would be an area of congregation, like entertainment or a fitness facility, where people would be staying a long time and wouldn’t be expected to shop for soft goods. Those uses could erode the parking area that would otherwise be used for a soft goods retailer.”

Richard Rizika of Beta Agency discussed more ways that restrictions are able to evolve with Globe St, to read the full article, visit: https://www.globest.com/2019/04/12/why-co-tenancy-retail-lease-restrictions-need-to-evolve/