Prepare for Three Key Requests in Parking Negotiations

Negotiating tenant parking requests is a key part of lease deals for most retail tenants. They’ll likely come to the table with requests, and your goal should be to work with the tenant to come up with parking provisions that help their businesses, without compromising your ability to run the center in the best interest of all tenants. Remember that a tenant could try to use the parking rights in its lease to block you from operating your lot the way you want to. Be prepared to field these common tenant parking issues:

• Number of spots available. One of the most important things a tenant needs to know before signing a lease is whether there will be an appropriate number of parking spots for its business—legally and practically. This depends on two different things: the zoning code that applies to the premises, and whether the number of spaces that the tenant needs is actually available on a day-to-day basis for its customers and employees. (Keep in mind that reserved spots will be a key issue.)

• Security costs. Securing the premises with cameras, a roving guard, an automatic gate, or some other surveillance system can be very expensive. A prospective tenant will want to know whether it is responsible for paying for existing security measures or providing its own security.

• Maintenance. A tenant will also want to negotiate the cost of parking area maintenance, specifically whether it’s included in CAM charges, and who will be providing the maintenance.

For additional parking points to consider, and a model lease clause you can use to spell out a tenant’s right to parking at your shopping center, see “Negotiate Common Tenant Parking Requests in Your Favor,” available to subscribers here.