Requiring Tenants to Advertise May Help Struggling Commercial Sites

More commercial property owners are looking to advertising as a way to generate foot traffic and bring more customers into their shopping centers. However, if an owner or manager has a limited advertising budget, how can they make sure their tenants do their part to promote their businesses and the center at the same time?

Although some property owners require tenants to participate in a merchants’ association or promotion fund, there are several specific advertising requirements that can be included in tenants’ leases. And, the good news is that advertising clauses are easily negotiable items. Some of these include:

· Requiring tenants to spend an agreed percentage of their gross revenues (or an agreed amount of money) on advertising;

· Requiring participation with other merchants in the center in a certain number of cooperative ads and promotions;

· Requiring that tenants’ ads include the center’s name, location, and logo or insignia; and

· Requiring tenants to advertise in particular media, such as radio or local papers, at particular times, or with particular frequency.