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Modifications to the Shopping Center: A Tenant's Perspective

By Glenn A. Browne

In most shopping center leases across the country, there is a provision that relates to the landlord's right to modify, change, add to, subtract from, and/or alter the size, dimensions, character, and construction of the shopping center. Very often, these provisions further grant the landlord the right to change the entrances, the number of parking spaces, the dimensions of hallways and corridors, the number of floors, the placement of kiosks, carts and retail merchandising units in the common areas, the location and arrangement of the common areas, and the merchandising mix of tenants. Generally, this type of a provision is viewed as boilerplate within the lease document and does not receive a great deal of negotiation from tenants.

However, in this era of changing uses for shopping centers, many of which are not even retail in nature, as well as based upon general issues of visibility protection, accessibility protection, and protection from the interruption of traffic flow of customers to a tenant's premises, a tenant would be wise to obtain certain restrictions on the landlord's right to modify the construction and character of the shopping center. While certainly a landlord requires the right to modify the internal construction in order to meet the needs of the tenants, the customers, governmental requirements, and the changing landscape of the retail environment, certain changes to the premises may dramatically impact the tenant's ability to attract customers and generate sales.

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