The commercial real estate market is seeing an uptick and one trend to watch is the shift to a market that is more favorable to landlords. A panel of commercial real estate professionals discussed the latest trends in the retail commercial market in a session Friday at the IAR Fall Conference & Expo.
Retail shopping center inventory is lower so it has become an issue of supply and demand and that has given landlords more leverage when it comes to setting rents and lease requirements, said JoAnn McGuinness, with Inland Real Estate Income Trust, Inc.
Todd Cabanban, of Cabanban, Rubin & Mayberry LLC, said there has been a trend toward more retail growth in the city of Chicago, but less in the suburbs.
One development that will affect commercial real estate is the state’s new medical marijuana law and the state-authorized dispensaries that will open to accommodate it. The panelists said where those dispensaries are allowed and what it means to other tenants will be an issue to watch.
Some upscale properties may begin writing specific exclusions in their leases to prohibit medical marijuana dispensaries and other specific businesses including video poker centers or Crossfit gyms from locating in their properties, the panelists said.
Session panelists included: Moderator Wayne Caplan with Sperry Van Ness, Chris Irwin of Jameson Commercial Real Estate, Scott Weinstein of Kovitz Shifrin Nesbit Law Firm, JoAnn McGuinness of Inland Real Estate and Todd Cabanban of Cabanban, Rubin & Mayberry LLC.
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