In recent years, the retail industry has taken some hits. In response, real estate development here in California and elsewhere has needed to change in order to move forward. Now, in light of current events, this becomes even more important. Could focusing on pad sites help save a real estate development?
Pad sites are those parts of a commercial development that make use of space that might not otherwise serve a purpose. Many people are used to seeing establishments such as banks and restaurants on these parts of a retail development, but these days, it may be possible to market these sites to other retailers looking for something different from a typical space next to other retail establishments. From a developer’s standpoint, marketing these pad sites to potential tenants could be a win-win proposition.
The landowner can still receive profits from the primary structure while building out a pad site to suit a particular tenant. In addition, it makes use of land that may not otherwise serve a purpose. The tenant gets a unique retail location, usually near the street, and the owner increases the value of his or her property. The visibility of these sites could not only increase traffic to the tenant’s business, but also to the primary structure containing other tenants, perhaps including an anchor tenant.
Real estate development was already in a state of flux, at least partly due to the increase in online shopping. Now, in light of current events, it is even more important for California developers to come up with innovative ways to attract tenants and business to their properties. Using pad sites could be one way to that.