Real Estate Journal — Economic Development — January 29 - February 11, 2016 — 11A
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M id A tlantic
E conomic D evelopment
By Jeffrey Silberman, Kaplin Stewart Prohibited uses in the modern shopping center era
T
he modern shopping center just ain’t what it used to be. Com-
hair salons, nail salons, stock- brokers, weight loss centers and similar uses, while not
these uses). Lastly, health clubs and gyms not only lease space, but they lease large chunks of space. Health clubs are presumed to take significant parking for long periods of time. However, the reality is that health clubs are busy at times when other retailers aren’t; early mornings and later in the evening. However, to assuage the concerns of retailers, health clubs can be limited to designated areas, or landlords can agree to lo- cate the front entrance of a health club in a location that promotes parking away from
other retailers’ primary park- ing fields. Retailing is changing, but with careful planning every- one can get live together in harmony. Jeffrey L. Silberman, Esquire is a principal of Kaplin Stewart law firm and a member of the eeal estate transactions de- partment. Mr. Silberman concentrates his areas of expertise in real estate transactions, particularly commercial and retail leasing, acquisitions and dispositions of real prop- erty and financing. n
A quick-service restaurant requires much less parking than a 6,000 s/f casual din-
m u n i t y shopp i ng c e n t e r s of yester- year were s t o c k e d with, per- h a p s , a g r o c e r y store, and then vari- o u s me r -
“In the declining number of power centers being developed, many of the big-boxes have significantly cut growth, and some have gone by the wayside, leaving only one tenant in a category.”
selling goods, provide services to the public that draw traffic to shopping centers. If a big box tenant wants some limit, then it is reasonable, and com- mon, to see a limitation on the amount of medical and service retail permitted (such as, not more than “x” percent of the shopping center to be used for
ing restaurant with a liquor license. Medical uses also need to be permitted. “Doc in a box”, dental offices and urgent care centers are moving from office space to retail space. Like- wise, “service retail” should not be caught in a restriction on “non-retail” uses. Banks,
Jeffrey L. Silberman
chants selling hard and soft goods. Power centers had their pick of multiple ten- ants for each of the various categories of retail, such as books, electronics, home im- provement and office supplies. Today, while grocers still anchor community centers, restaurants and service uses dominate the balance of the tenant line-up. In the declin- ing number of power centers being developed, many of the big-boxes have significantly cut growth, and some have gone by the wayside, leaving only one tenant in a category. So, then who is leasing space in our shopping cen- ters? Most of the new ten- ants are those that sell goods and provide services that you can’t buy online. Restaurants, health clubs and medical uses are the big space-takers in the current market. These users have provided a great boost to landlords needing to fill their spaces. However, the complication is that these tenants are found on almost every prohibited use list that you find in leases with tenants that have the cache to impose these prohibited uses. The new-blood tenants are viewed either as parking hogs or not a typical shopping Big box retailers and supermarkets, who are the tenants that impose prohibited use restric- tions, are pretty smart and have a good instinct for self- preservation. They know that a dark shopping center does not help, so it is possible to draft prohibited use clauses to protect the parking field and integrity of the center, while at the same time providing a landlord flexibility to lease its center. Restaurants have to be per- mitted. If parking is an issue, designate areas where restau- rants are not permitted, and, if necessary, differentiate be- tween restaurants that do and don’t overly burden parking.
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: JEFFREY L. SILBERMAN • jsilberman@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2518 • www.kaplaw.com Visit our Real Estate Blog: www.philadelphiarealestatelaw.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart A t t o r ne y s a t L aw
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