2 — May 2026 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ........Tony Grant, A&G Real Estate Partners; Bargold Storage Systems Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 5 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
Tony Grant
Why Retailers Should See Leases as Strategic Assets R etail chains can gain an edge by thinking of their leases as strate- gic assets rather than mere li- abilities, advised an executive from national advisory firm A&G Real Estate Partners . “That might sound like ver- bal jiujitsu, but the right ap- proach can help you achieve real-world outcomes like re- ducing your occupancy costs or reinvesting in your stores,” advised A&G senior managing director Tony Grant in an Expert Viewpoints piece for Chain Store Age Online . Grant has negotiated more than $500 million in lease savings on behalf of retail, res- taurant and fitness operators in his 20-year career. He offers three tips for healthy and dis- tressed chains seeking to ramp up real estate performance. Start the conversation— even if you’re healthy Grant advises even healthy operators to consider the ben- efits of real estate restructur - ing, noting that “the smartest
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retailers are always looking for ways to generate more value within the portfolio.” He uses the example of a coffee house chain with leases expiring in 10 locations. “These stores happen to be in need of a refresh: up- dated bathrooms, modern finishes, and repainted exte - riors,” Grant writes. “Instead of continuing with business as usual, why not walk into those landlords’ offices and start a dialog about the future?” The coffee chain, having decided that each location needs $150,000 in reinvest- ment, asks its landlords for tenant-improvement (TI) al- lowances of 20 or 30% as well as two-year lease extensions at flat rent. “Taken together, the rent savings plus that TI al- lowance translate into $50,000
kicked in by the landlord,” Grant writes. “That means the retailer is able to save $1.5 million across the 10 locations … There are many different possible permutations. The key is to take the initiative and engage in those discussions.” Take a second look at your store footprint Retailers with oversized locations should consider carv- ing out useable space for the landlord. “In many cases, landlords are able to use that clawed-back space to create another storefront and bring in a new tenant with good credit and an attractive rental rate,” Grant writes. The original retailer benefits by reducing real estate costs on its profit-and-loss statement: A 30% space reduction translates continued on page 24
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