Office landlords are increasingly willing to invest in and collaborate with local retailers, making up-front investments to sustain the space and bolster the overall building environment, according to Colliers.
“The ideal scenario would be for office owners to invest and re-think the traditional retail market rent model in partnering with mature local retailers, particularly in food and beverage, to support those businesses and help bring back additional office tenancy,” said Michael Lirtzman, head of office agency leasing at Colliers, in the report.
These short-term arrangements with small-business tenants require minimal landlord investment in converting spaces for subsequent use. An unexpected benefit for retailers is the diversification of tenant mix, potentially attracting foot traffic to well-established brands in a physical setting.
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