How can retail landlords make more money? A recent article in the Wall Street Journal, entitled Shopping Malls’ New Product: Fun reveals the answer…add amusement attractions.
According to the article, many U.S. malls are profiting from entertainment tenants and amusement attractions, including go-kart racing, indoor rope climbing, laser tag, skydiving simulators, escape rooms, high-tech golf driving ranges, glow-in-the-dark miniature golf, state-of-the-art movie theaters, and new bowling and dining options.
These attractions generate traffic and keep people in the malls for longer periods of time. That means shoppers are spending more money. Food and entertainment now account for over 22% of the occupied space in malls and that percentage is increasing.
But there are risks to adding entertainment facilities—they may attract unsupervised children, reckless behavior, and increased liability. Before you decide to add amusement attractions or other uses to your commercial building it is recommended you speak with experienced counsel to maximize opportunities while reducing risk. For example, you may lose money by failing to obtain approvals required by other tenants or by governmental authorities. You may also be violating the terms of your lease resulting in loss of money spent on improvements and perhaps even damages. An experienced real estate attorney can advise you of your options help you obtain necessary approvals for added attractions, and address insurance needs for increased liability and capital improvements.