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Retail Marketing in the Common Areas of an Enclosed Regional Mall
Often, in enclosed mall settings, a tenant will want the right to perform various marketing services, including, but not limited to, handing out coupons, handing out samples of its product, distributing surveys, distributing brand-name items, or having mascots or other branded costumed employees greet or talk with customers in the shopping center. These types of marketing efforts can have a beneficial effect both on the tenant's business and upon its ability to pay the landlord a percentage of sales from the tenant's business operation. However, the landlord and the tenant should arrive at certain understandings concerning the business operations of the tenant in the common areas, so as to avoid situations that may affect the overall operation of the enclosed regional mall. This article addresses those issues that should be addressed by the landlord and the tenant during their lease negotiation, in order to avoid unwanted circumstances at the shopping center.
Location of Marketing Efforts
Generally, a landlord will want a tenant to maintain its marketing efforts in the common areas within a fixed number of lineal feet from the tenant's premises. The distance will vary depending on the location of the tenant's premises and the location of adjacent retail tenants. Also, the distance may vary based upon whether the tenant is located in a designated area (e.g., a food court, outside of a movie theater or other area designated for a certain specified type of tenant). In general, the landlord will want to keep the tenant's marketing efforts to an area within 10 feet to 25 feet from the tenant's premises. However, the landlord and the tenant should arrive at the stated distance that will be acceptable to both as part of their lease negotiation. Further, the landlord and the tenant should arrive at a method for monitoring the distance that the tenant's marketing efforts are performed at the shopping center. The landlord and the tenant may want to establish a marked-off area within which the tenant may perform its marketing efforts. Conversely, a landlord and a tenant may want to establish certain specified landmarks within the common areas within which the tenant's marketing efforts must be performed.
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