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2A — February 8 - 21, 2019 — M id A tlantic

Real Estate Journal

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Mid Atlantic Real Estate Journal

Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Account Executive ........................................Joe Christman Account Executive ........................................... Steve Kelley Account Executive ............................................. Kim Brunet Account Executive ........................................ Marisol Chase Account Executive .........................................Alyson Parker Senior Editor/Graphic Artist ..........................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists...Silas Chamberlin, PhD, York County EconomicAlliance; Brenner Green, Real Property Capital, Inc.; Marcy Hamilton, Meyer, Unkovic & Scott; Brenda Muller, Asset Preservation, Inc. Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 31, Issue 3 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

A Pre-Flight Checklist For A Business In An Airport A Marcy Hamilton s many familiar mall storefronts go dark, it's no secret that brick- and-mortar retailers are in a fight to stay relevant. You wouldn’t know it, however, if you spend all your time in airports, where sales from retail shops and other conces- sionaires continue to increase worldwide. As retailers struggle in the digital economy, airports can represent a rare refuge where a captive audience of travelers is more willing to spend. But before signing a lease in an airport mall, which are similar in many respects to a regular suburban counterpart, busi- ness owners should consider a number of special challenges. Negotiations When negotiating a lease, think about your exit strategy. What happens if sales don’t reach the level you expected? A kick-out clause allows tenants or the landlord/mall developer to terminate a lease early un-

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der specified circumstances. This way, tenants can cut their losses early, and developers can try for a more successful business than waiting out an underperforming one. In the same vein of planning for the unexpected, if a devel- oper is proposing a relocation that could damage sales, a tenant can negotiate up-front the right to reject the proposed space and terminate the lease, or the tenant could accept the space but negotiate a reduction in rent until sales reach the level they were at before the relocation. Similarly, another provision to lower rent can be negotiated to account for a potential scenario in which enplanements fall, lowering

foot traffic. More considerations in a negotiation include pushing for non-disturbance or recognition agreements if the developer operating the mall breaks its lease with the entity or author- ity that owns the airport. Security Airports are hyper-focused on security and, therefore, have certain logistical hurdles to cross concerning supplies and even the products you can sell. With space at a premium, not every store has an equal amount of square footage, so tenants should understand their needs and negotiate additional storage space if continued on page 18A

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