Firm Insights

Experiential retail has emerged as a game-changer in the world of brick-and-mortar stores, offering immersive, engaging shopping experiences that captivate consumers. However, bringing these innovative concepts to life involves navigating a complex web of landlord and city approvals. Here’s a closer look at the crucial aspects of securing these approvals and ensuring your experiential retail venture can thrive. 

The Importance of Approval from Landlord (and other Tenants?) 

Use Restrictions and Limitations

Retail leases often contain strict limitations on use of the premises, including exclusive uses and restrictions imposed by other tenants of the shopping center.  When pitching your experiential retail concept to a landlord (and possibly another tenant who has been granted use restrictions), emphasize how your vision will benefit the property. Highlight how your store will attract foot traffic, increase property values, and not create parking problems or impede access to other tenants’ stores.  Obtaining these approvals may involve granting quid pro quo concessions, such as longer lease terms or operating covenants. 

Aligning with Lease Provisions

Experiential retail often involves significant modifications to a space, from redesigning interiors to installing interactive technology. Before making any changes, it is crucial to review your lease agreement. Many commercial leases include clauses related to alterations, requiring landlord consent for any modifications. Understanding these terms helps avoid disputes and ensures your plans align with your lease obligations. 

Design and Aesthetics

Landlords often have specific design guidelines or aesthetic standards for their properties. Your experiential retail concept needs to align with these guidelines while still achieving its immersive goals. Collaborate closely with the landlord and their design team to ensure your store’s design complements the shopping center’s overall look and feel.

Compliance and Safety

Landlords will also be concerned with compliance and safety issues. Any installation, from interactive displays to structural changes, must meet safety codes and regulations. Work with the landlord to ensure all modifications comply with building codes and do not compromise the safety or functionality of the space.  Tenants may also want to review their insurance policies to ensure that there will be coverage, should the experiential use trigger damages or injuries.  For example, that yoga class on the patio of a coffee shop may require a special endorsement to the coffee shop’s insurance policy!  

Navigating City and Municipal Approvals

Zoning and Land Use

Zoning laws dictate how properties in different areas can be used. Before setting up your experiential retail store, check the zoning regulations for your location. Ensure that your intended use aligns with these regulations. Even though a tenant may have the ability to operate a retail store in a particular zone, some cities may require a conditional use permit if the experiential use is not contemplated in the zoning code.

Building Permits

Major alterations, especially those involving structural changes or new installations, typically require building permits. This process involves submitting detailed plans and specifications to your local building department. Permits ensure that all changes comply with safety standards and building codes. Start this process early, as permit approvals can take time. 

Signage and Branding

Experiential retail stores often feature unique and eye-catching signage. However, city regulations can restrict the size, type, and placement of signage. Review local signage ordinances to ensure your branding efforts comply with municipal rules. You may need to apply for a sign permit, which requires a different set of approvals from city officials. 

Community Impact and Public Hearings

For larger projects or those in sensitive areas, a public hearing may be required. This process allows community members and stakeholders to voice their opinions on the proposed changes. Engage with the community early and address any concerns they might have. A positive reception can facilitate smoother approval processes. 

Building Strong Relationships

Engage Early and Often

Building strong relationships with landlords and city officials is crucial. Engage them early in the planning process and keep them informed of your progress. Transparency helps in addressing potential issues before they become major roadblocks. 

Seek Professional Advice

Navigating landlord and city approvals can be complex. Consider working with professionals such as commercial real estate agents, legal advisors, and architects who specialize in retail spaces. We can streamline the approval process and ensure compliance with all regulations. 

Conclusion

Experiential retail offers exciting opportunities for creating immersive and engaging shopping experiences, but it also requires careful planning and approval processes. Securing landlord and city approvals involves understanding lease terms, complying with zoning and building codes, and addressing community concerns. By proactively managing these aspects and building strong relationships with stakeholders, you can turn your experiential retail vision into a successful reality.