The Shopping Center Lawyer

Landlords and Sellers of Property Beware: New Law Requires Disclosure of Flood Risks for Commercial, Industrial and Multi-Family Sites

By: Andrew B. Robins

A new statute imposes sweeping new notice requirements affecting properties that are subject to flooding. All owners of land in New Jersey, including commercial and industrial property owners, who lease their sites or are considering a transfer of improved or unimproved land should consider whether the new notice requirements apply. A copy of the adopted statute can be found here.

Vacant Storefront Registry Program – Would It Really Help?

By: Jason L. Sobel and Ivette P. Alvarado

A bill on Governor Murphy’s desk for possible enactment into law would add yet another burden on commercial property owners. This time it’s an effort to create a public database of all vacant commercial space available in the state for lease or purchase. Legislators have touted this initiative (Senate Bill 3286/Assembly Bill 4750) as a tool to help New Jersey’s small businesses in “locating storefronts,” but what does it mean for commercial property owners?

Liquor License Issue Is 2-Part Problem: Here’s 2-Part Solution

Op-ed as seen on: ROI-NJ.com
By: George Jacobs and Ted Zangari

High on the list of antiquated regulations that are stifling competitiveness in New Jersey are those governing restaurant liquor licensing. So, kudos to Gov. Phil Murphy for being the first governor in modern state history to openly call for the overhaul of a system that for decades has prevented many restaurants from offering their customers the convenience of an adult beverage. The Murphy administration’s plan is to make restaurant liquor licenses less expensive and more readily available. Both are laudable goals, but the governor’s initiative has encountered resistance from an array of special interests, and legislators are now focusing more narrowly on the issue.

Bill on Governor Murphy’s Desk Would Impose New Flood Disclosure Notice Requirement on All Commercial & Residential Leases and Sales of Property

By: Andrew B. Robins

Recently passed legislation on Governor Murphy’s desk for enactment would require all new leases and lease renewals in New Jersey – both commercial and residential – to include specific disclosures regarding potential and past flooding. Similar disclosures would also be required to be added to the “Property Condition Disclosure Statement” for the sale of “any real property located in the State.” (A separate post on this law blog will summarize the bill’s impact on sale contracts.)

The Revenge of the Parking Lot

By: Ted Zangari

It’s true: COVID-19 has breathed new life into parking lots. As Neal Freyman of Morning Brew has observed:

• Churches, synagogues, and other places of worship have been holding radio broadcasted services in their parking lots.
• DJs in Germany have been hosting drive-in raves in parking lots.
• With libraries, schools, and coffee shops closed, parking lots have become a “digital lifeline” for many Americans needing to access wi-fi.

These adaptive uses may be temporary, but “curbside” delivery and “patio” or “outdoor” bar/restaurant seating may become permanent features of the modern-day parking lot (and shopping center sidewalks) long after the epidemic subsides.

 

> Click here to read "The Revenge of the Parking Lot" from Morning Brew

 

Landlords Brace for Fallout, Search for Solutions With Retailers Battered by COVID-19 Shutdown

By: Ted Zangari

I salute property owner, client and friend George Jacobs for his candor about the mess in which shopping center owners, managers, retailers and lenders find themselves. My thoughts about the shopping center landlord-tenant relationship in the midst of this pandemic can be found here: https://lnkd.in/d2QPz5G.

> Click here to read "Landlords Brace for Fallout, Search for Solutions With Retailers Battered by COVID-19 Shutdown" from Real Estate NJ

JC Penney Goes to Court to Try to Stop Sephora from Pulling Out of the Troubled Chain’s Stores

By: Ted Zangari

As malls and shopping centers re-open, a second default scenario looms behind the tenant’s failure to pay rent: its failure to “continuously operate” as required in many store leases. Just as JC Penney is fighting to keep Sephora’s store-in-store concept operating (see linked article), landlords can be expected to likewise enforce their rights to prevent the domino effect of impermissible store closings by some tenants triggering the go-dark rights of still more tenants. Courts around the country are divided on the enforcement of continuous operations provisions in leases; this will get interesting.

> Click here to read "JC Penney Goes to Court to Try to Stop Sephora from Pulling Out of the Troubled Chain’s Stores" from CNBC

Re-Imagining the Shopping Center Post-COVID: Zoning Changes Needed to Accommodate Store Features No Longer Deemed Convenience Amenities

By: Ted Zangari and Kevin J. Moore

Curbside pick-up lanes and “to-go” parking spaces—already trending in shopping centers before the pandemic—have become essential features of retail stores in the wake of COVID-19 and are likely to become permanent fixtures in shopping centers. Likewise, drive-throughs and walk-up or vestibule kiosks will no longer be limited to banks and pharmacies, as retailers of every type seek to adapt to the new public health normal and avoid risks and exposures to employees and customers alike. How does this sudden shift in shopping center design and layout square with existing zoning laws and municipal codes around the Garden State?

Rent Obligations on Retail Space in the Midst of a Pandemic: A Path Forward for Landlords and Tenants

By: Ted Zangari

Download Rent Obligations on Retail Space in the Midst of a Pandemic A Path Forward for Landlords and Tenants

Going Dark: Land Use Implications of Converting Retail Space to “Dark Stores” for Fulfilling Online Orders

By: Adam J. Faiella

In recent years, retailers have begun to convert unused space in their stores, including the sales floor area, to warehouse and distribution operations for online orders as e-commerce has increased. This trend has accelerated in response to the surge of home deliveries during the COVID-19 pandemic, and many retailers are utilizing even more floor area, and sometimes entire stores, as fulfillment centers. Re-purposing vacant or unused space can aid brick and mortar retailers in competing with pure-play online merchants and help property owners prevent lease defaults and maintain healthy occupancy levels. Municipalities also benefit when the rent roll of a commercial tax ratable of any kind, especially a shopping center, is stabilized. However, retailers and their landlords need to proceed carefully because converting unused retail space to “dark stores” for warehouse and distribution could have land use implications.*