Craft breweries are still finding ways to open their doors. As of June 2020, there were an estimated 8,200 Independent craft brewers in the United States. As of November, that number had crept up to 8,400. 

Most of the losses seen for small craft brewers this year has been in on-premise sales. Prior to the pandemic, many small brewers had been moving towards on-premise sales because it offered larger profit margins. With many geographies limiting in-person drinking and dining, Nathan Greene, consulting analyst for New York-based Beverage Marketing Corporation said that 75% of the craft beer’s losses will come from these on-premise sales. 

These smaller breweries have been forced to pivot to off-premise sales. Many were unprepared or took some time to ramp up for off-premise packaging. As a result, many of the larger breweries have primarily benefited from the increased off-premise sales of beer during Covid. To add additional issues for craft brewers, there has been a massive aluminum shortage, meaning that even if these small brewers wanted to sell off-premise beer, they have had issues getting it packaged for sale. 

However, even with these struggles, overall beer sales numbers were staggeringly good for 2020. Total domestic beer saw sales of $26.6 billion, 5.9% year over year increase and craft beer has seen sales of $4.7 billion, a 10.7% year over year increase. For the 6 month period ending around September 5th, beer sales rose 11.2 percent in value, while craft beer sales increased 16.3 percent, according to Nielsen data. But these increases have not canceled out the widespread losses from sales at bars and restaurants.

Long term, the craft beer industry will remain strong. The TTB had 219 new brewery applications between Q2 and Q3 of this year, a period that many would have assumed to see almost none. Many experts imagine that future closures will not be due to Covid-19, but due to this increased competition. 

Unfortunately for those hoping to bring a new brewery to their vacant retail space, that may not be happening any time soon. BMC’s Greene said “Many craft brewers, if they hadn’t done so before, are embracing new online ordering systems, eCommerce and at-home delivery.

Pre-COVID, around 10-15% of independent craft beer volume went through direct sales, this will likely grow to about 20 percent by the end of 2020.” This means that the trend for breweries is much like the rest of retail, towards more e-commerce.

Ready to bring a brewery into your own retail spot? With a free demo from Retailsphere, you’ll see how our powerful database can help you fill any vacancy. Schedule a demo today.

Many retailer databases crowd the market but none provide data as complete and reliable as ours. Retailsphere works hard to offer the most complete retailer profiles designed with you in mind. Whether you're a shopping center owner, landlord, commercial real estate broker, developer, or something else entirely, we provide the data you need to fill your vacancies with the best retailers as quickly as possible.

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Small plates focus on the community aspect of dining. What was once reserved for the appetizer course, small plate restaurants offer diners to share an experience with one another. Can this type of dining survive through Covid-19? Will people want to share food once restaurants reopen?

Before the current pandemic, you may have already noticed subtle changes: servers encouraging you to order for the table, smaller portions, and a greater variety of items. You're not the only one. Following on the heels of the communal table trend in the early 2000's, at which people from different parties share one large table (like Momofuku in New York), the small plate is the natural extension of this trend.

This trend in dining seems to follow the greater weight that millennials and young people have put on the shared experience. Young people have traditionally wanted to go out to eat with their friends in a way that they can all share. They want a dining experience where they can all sit down, choose a few different items and everyone can try a little bit of everything.

Even during the pandemic, places have gotten creative on creating small plates to go. Take Local and Vine in NYC as an example. They have a simplified menu available through Seamless so you can continue to enjoy your favorite shared dishes within your own home.

So will people flock back to this shared dining after Coronavirus? We believe that people will be more eager than ever for more communal experiences after having been cooped up for many months. And what better way to reconnect than over food?

Plus, small plate restaurants are a great option for consumers of all price-points. Since small plates restaurants tend to serve smaller portions at lower costs, as they allow a greater amount of control when it comes to the quantity and pricing of food. This is a great way to ensure that there is always some level of foot traffic coming in and out of the shop once doors begin to reopen.

For owners of shopping centers, small plate concepts are a great type of business to consider if you're trying to attract a younger crowd. Even with the Covid-19 slow down, we believe small plate restaurants will continue to grow in popularity. Plus, now is a great time to use a slower period to renovate an old space into an amazing restaurant ready shell that could cater to a small plate sharing.

Sign up for a free demo today to see how you can find unique restaurant options like the ones featured here.

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One aspect all restaurants have had to learn early on to survive financially in 2020 is that take out, curbside pickup, and delivery are vitally essential. Restaurants that didn’t specialize in these suffered until they figured out how to make it possible. Good fortune smiled on the pizza industry since most pizza places have mastered the carry out and delivery for decades. Not only was pizza ready to go in the new era covid created, but pizza has often been an easy meal to provide for families.

Cost-effective

It’s cost-effective, helping families stretch the budget when economic times have been downright nasty. Pizza also falls into the comfort food category. Crispy crust, gooey cheese, just the right toppings… mmm. It hits the spot. Pizza can be eaten hot or cold. No utensils required. Without knowing it, pizza was the answer to consumers' food fuel. To prove pizza has been a forefront winner during the pandemic, let’s take a look at the statistics. 

Papa John’s, which had been underperforming for a couple of years, saw a 28% increase in the second quarter (in the midst of the onset of the pandemic) compared to last year and continues to increase month to month. In an effort to keep up with the demand, Papa John’s hired 20,000 new employees between March and June with plans to hire 20,000 more. Desperate to get these new hirees started, the company even simplified the hiring process so that most new hires can start the same day they are hired. 

Jobs created

Plagued by downward trends in sales and bankruptcy, Pizza Hut has been positively buoyed in the face of the coronavirus. The best week in sales in 8 years occurred in early May, and the brand continues to make gains. Pizza Hut announced it will hire 30,000 permanent positions, including cooks, delivery drivers, restaurant managers, shift leaders, and virtual call center agents. To get pizza to the masses faster, the training for delivery drivers is down to 5 hours before they hit the road, three times faster than previous training. 

Based on world-wide sales, Domino's is the leader in the pizza industry. In just the past three years, Domino’s stock has increased 99%. Their large slice of success over other pizza giants is credited to their innovations in technology and mastering the delivery. COVID-19 might as well have been a small bump in the road considering Domino’s was prepared for the chaos that the coronavirus created. Already set in the app and online was the innovative technology for ordering pizza on an app and tracking your pizza status from inception to delivery. Additionally, Domino’s has been the only pizza chain to rely solely on their own in-house delivery teams. Other pizza places supplemented the demands for deliveries by using a mixture of in-house delivery fleets and third party delivery services, such as UberEats. Domino’s has proved over and over that they are doing things right. U.S. individual store sales gained by 16% in Q2 of this year. In the first half of 2020, Domino’s net income soared to $240 million, generating a 30% increase from the same time last year. 

The consumers have spoken, and the pizza industry is responding in a flurry to keep up with the demand for pizza. There is yet to be a slow in the pizza industry’s growth, and though the trends may level off as consumers and restaurants get used to new take out options, pizza will continue to reign supreme. The fact is, pizza as we know it, in a box and ready to go for delivery or take out, provides slices of normalcy that many cling to in this year where the normal is still not defined. Pizza is a comfort food for more than one reason. There is comfort in knowing what to expect.

Starving for a prosperous pizza place in your vacant space? Order up some time with a Retailsphere professional to strategize an effective system for searching for ideal tenants.

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While challenges are present, more businesses continue to open, and more parents are returning to work away from  home. Demand for childcare will continue to grow, and opportunities will arise. And the latest research states that daycares are actually low risk for spreading COVID.  

With the results of the presidential election finally in, landlords can also plan for daycares to be buoyed by President Biden’s promise to make childcare more affordable and accessible for working families. 

Here are our top tips for helping childcare tenants stay healthy and successful in a post-pandemic world:

1. Ensure proper ventilation.

With COVID-19 still hitting peak levels and the normal flu season also upon us, ensuring proper ventilation is key to the health and safety of childcare facilities. Arrange for a thorough inspection, as well as a possible cleaning, of air ducts and the regular change of filters.  

Allowing for open windows and doors when possible will also promote a healthier environment. Landlords may want to install screens, childsafe windows, or evaporation fans to promote air flow. 

2. Think smaller spaces.

Because of limitations in classroom size, daycare centers may turn to non-traditional methods. Micro-locations in smaller, more open-concept spaces may be an affordable option for centers with low occupancies. 

With this approach, large square footage vacancies could be broken up to provide more classrooms and accommodate smaller class sizes with temporary walls and partitions. Courtyards or unused parking areas could also be repurposed for extra outdoor space. 

3. Consider neighboring tenants.

While many businesses will require employees to return to the office, there has been a huge shift in acceptance of remote work. Either way, working parents need childcare. And as shoppers continue to limit their exposure, convenience is key. 

Consider preparing childcare friendly spaces for rent right next to co-working spaces. Clustering these types of tenants with other necessities such as grocery stores or pharmacies can drive more traffic to the entire space. Areas that contain higher concentrations of healthcare workers, blue-collar, or hourly employment will also likely see an increased need for childcare centers as they are not able to work remotely. 

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Would a childcare center be a good fit for your available properties? Retailsphere can help find great tenants to fill your commercial vacancies. Click here to schedule a free virtual demo. 

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In early September, Amazon and mall owner Simon Property Group reportedly began exploring the idea of turning some of Simon’s empty J.C. Penny and Sears stores into fulfillment centers.

Later that month, JLL launched its Retail Industrial Task Force, a blended service model catering to retail property owners, tenants and investors to convert unneeded or obsolete shopping center space into distribution centers, among other retail, logistics and development assistance.

“Dark stores or vacancies often present an ideal opportunity for last-mile fulfillment center conversions, especially as e-commerce delivery competition continues to grow,” said Naveen Jaggi, president of retail advisory services for the Americas at JLL, in a statement. He added that conversions require an understanding of the capital markets environment and how institutional investors value assets. The conversion concept is particularly appealing in high-density urban environments where demand is highest, JLL officials noted, while nationally the average industrial vacancy rate is less than 4 percent.

The retail-to-industrial conversion idea is not new. Amid the growing list of shuttered malls and rising e-commerce sales over the last several years, retail real estate and land use experts have suggested that some of the properties could be repurposed as industrial sites, and it appears to be happening. CBRE reported that since 2017, developers in the U.S. have turned some 13.8 million square feet of dead malls and other underutilized retail space into 15.5 million square feet of last-mile distribution centers.

One developer aims to tie retail to industrial in a different way. ShopFulfill, a startup founded by New York-based real estate investor Shlomo Chopp, is launching Anchor Shops, a new concept that places growing online retailers in a traditional brick-and-mortar environment while providing on-site logistics space and services. Key to the operation, Anchor Shops will provide tenants with a range of turnkey services. Retailers will share staff, warehousing and transportation services, for example, and will use the distribution space as a backroom to stock their shelves at the property and to pre-position its products for local delivery.

“The reimagining of retail is not as simple as coming up with one idea that fits all. What’s going to solve it involves many components, and of those is Anchor Shops,” said Chopp, who also provides commercial property loan restructurings and workouts. “We’re creating a phased growth process where we can take small brands and grow them into traditional retailers, but traditional retailers that have an infrastructure to support them.”

Creating a connection to customers is a key component of the Anchor Shops strategy. Typically, small retailers can’t justify the cost of opening, staffing and supplying local stores. Instead they sell their goods through a general retailer or department store, but they lose a direct connection to their customers, Chopp said. Establishing a physical presence will help build those connections, he added.

Anchor Shops will also employ a complementary merchandising approach to target specific types of customers and promote cross-shopping. Shoppers will check out at a central counter, and when receipts are divvied up at the end of the day, retailers will be able to see the details of their customers’ entire shopping trip.

“Retailers won’t have the burden of operating a store but will have smooth interplay between brands – not only are other brands helping you make a sale, but you’re also helping other brands make a sale,” Chopp said. “The strategy goes to the core issue of, ‘How do I create sales in the store, how do I use the store to create more online sales, and frankly, how do I use additional online channels to drive people to the store to generate higher margin sales?’”

Originally ShopFulfill expected to begin opening Anchor Shops locations in Philadelphia and southern New Jersey this year, but the lockdown changed those plans. Now the company intends to take advantage of the crisis by buying assets at a discount or recapitalizing and taking control of struggling properties. The company is looking for open-air lifestyle centers of 250,000 square feet or more where at least 40 percent of the space is vacant or severely underperforming.

“We have a path to acquisitions and are looking for properties that we can buy at the right price and turn around,” Chopp said. “It’s going to be a process, but we’re keeping a very close eye on opportunities.”

Whether looking for up-and-coming or longstanding brands to fill space in your retail property, Retailsphere can help you identify and contact tenants that can boost the complementary appeal of your tenant mix and lessen the risk of storefront vacancies. Schedule a no-obligation demo today and see how easy Retailsphere can make your tenant search.

The post Retail-to-Industrial Conversions Find Traction Amid Pandemic appeared first on Retailsphere.

Pandemic Reaction

Nordstrom isn’t alone in its declining margins and sales; the coronavirus has changed the way consumers shop and interact. A study released by Accenture noted that 85% of consumers surveyed in stabilizing markets, and 86% of those surveyed in advancing markets “are worried about the impact of the pandemic on the economy.” Given that consumer confidence goes hand-in-hand with consumer spending, their worries are, well, worrying. The less secure consumers feel, the less likely they are to spend money. Added to this is ongoing unemployment and furloughs, which puts an additional halt on spending.

So, rather than basking in the success of a marketing strategy that embraced a connected ecosystem and continued experiential retail, Nordstrom found itself taking “actions to meet evolving customer preferences by expanding [their] assortment to reflect growing preferences for categories focused on casualization, comfort, wellness and home,” Nordstrom said, during its recent earnings call.

Rescheduling its anniversary

Another change Nordstrom made in 2020 was to reschedule its popular Anniversary Sale. The sale typically takes place in July, and offers huge markdowns on a variety of goods. This year, the sale was moved to August, “to help ensure the safety and comfort of [their] customers and employees, and to deliver the most relevant merchandise assortment,” Erik Nordstrom said during the earnings call.

Nordstrom went on to suggest that the unofficial results had been very much in line with corporate expectations. However, that shift caused the company’s online arm to take a hit. The specific sales results will be reported in its Q3 2020 earnings report, scheduled to be released in late November.

Where Nordstrom goes from here

Nordstrom executives didn’t provide an outlook in its Q3 earnings call, only suggesting that “we’re confident that we can improve sales trends in the second half of the year and beyond,” President and Chief Brand Officer Pete Nordstrom said, in a press release. Looking ahead to any kind of outlook is difficult, given the current, difficult environment.

While Nordstrom is considered a department store retailer with a relatively good chance of survival, thanks to its robust e-commerce platform and off-price segment, clearly their expansion plans announced in 2019 around their "Local" brand are seeing less traction as physical retail continues to struggle. On the positive side, their discount chain, Nordstrom Rack, has seen traffic begin to come back more quickly than in their other locations. And last year Nordstrom Rack surpassed the flagship brand as highest grossing portion of the business, which combined could be good news for the Nordstrom brand as a whole.

Do you have a large space being vacated by one of the Nordstrom Covid-19 closures? Let Retailsphere help you identify retailers who are continuing to expand and looking for large amounts of retail space. Sign up today for a no-obligation demo and see how much simpler your tenant search can be. 

The post How COVID-19 has changed Nordstrom’s Store Revamp Plans appeared first on Retailsphere.

Athleta

Staying cozy at home, gyms closed, and virtual meetings are just a few reasons why activewear, particularly Athleta has done well. In March, Fitbit reported a decrease in the number of number of steps users took per day, but accelerated workout activity. Explanation: more people stayed at home, but continued to work out to pass the time in lockdown. Needing work-out garb from Athleta isn't the only reason for increased sales. Leggings, also referred to as yoga pants, have become a fashion staple in women’s apparel, including business casual. Working at home meant workday outfits needed to be more comfy. Video conference? Wear leggings (no one will notice). But not just any leggings will do. Reportedly, Athleta boasts much higher quality than most leggings. And consumer trends have been changing to a minimalist mentality to choose quality over quantity. 

Sweetgreen

Focused on seasonal and sustainable food sources, Sweetgreen was prepared for the COVID season of chaos with a platform for sustainable success. Set in place long before COVID was a concern were the platforms to order online. In fact, pre-Covid, 50% of Sweetgreen’s sales were digital orders. Transferring to mostly digital sales with ease, thanks to the technology in the right place at the right time, Sweetgreen has been able to expand. In April, a new food category, geared towards revving up the dinnertime customers, was released. This year, Sweetgreen has planned 20 new locations. Conscious of the spaces they fill, they “seek to preserve and honor the natural structure of a building, and .. actively seek distinctive spaces with interesting history.” Sweetgreen’s combo of unique spaces, “food ethos”, and streamlined service, thanks to early digital ordering platforms, has set them up for continued championship in the restaurant industry. 

Tropical Smoothie Cafe

Like many brands in the outbreak of Covid, charity came first. Tropical Smoothie Cafe pledged 100,000 smoothies to first responders and hospital workers. They surpassed that pledge and donated 180,000 smoothies. Continuing their generosity, another 1,000,000 smoothies were pledged nationwide. Tropical Smoothie took their charity further by focusing on helping keep franchisee owners afloat. Corporate decreased royalties by 50% and focused on local marketing. Another reason for success during the pandemic was explained by Tropical Smoothie Cafe CEO, Charles Watson, “Consumers are looking for ways to eat healthier because of COVID-19, but they don’t want to sacrifice flavor. Our menu includes incredibly delicious food and smoothies that can be a healthier alternative to traditional QSR options,” Tropical Smoothie Cafe was the perfect choice for a population getting sick of the regular fast food options. 

Tractor Supply Co

When most stores were still in lockdown, Tractor Supply Co was still open. High levels of foot traffic were reported, and one reason could be because they were one of the few places open. However, with a closer look, Tractor Supply happened to have the right products for a lockdown. Bird feed was a very popular item as a result of the surge of birdwatchers during lockdown. Galvanized tanks, typical for feeding livestock, were being purchased and converted to swimming pools. With vacations cancelled, the need for fresh air, and a different environment, more and more people took to the outdoors. Equipment like kayaks and hiking boots were just some more of the items Tractor Supply sold quickly in the throngs of the early COVID era. 

Whether it was having the right plans in place for an easy transition to the new normal, or having the right product for lockdown, these four brands thrived and continue to expand when so much of the economy has suffered due to COVID-19. Our world is in a state of change, desperately seeking a new kind of normal. These brands produce hope that despite national crises there can be success. The next question is how to find brands like these to fill the empty spaces of shopping centers. Retailsphere helps find the thriving tenant, like the ones above, to fill your vacancies. Schedule a demo to find out how.

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Despite the current economic downturn, the fast food market is estimated to reach $931.7 billion by 2027, making the segment highly attractive as tenants that will weather economic and health crises. Interested in bringing a quick service restaurant on as a tenant? Here are 5 fast expanding options you may want to add to your list of prospects. 

Raising Cane’s 

This cult favorite is quickly finding mass appeal. The chain is well known for their chicken fingers, crinkle cut fries, and signature sauce. Raising Cane’s saw an uptick of 22.46% in growth this year. In fact, Raising Cane’s CEO recently shared that after just 30 days, during the height of the pandemic, their sales totally recovered to pre-COVID numbers. This incredible strength and growth makes them a great choice for a strong tenant. 

Tropical Smoothie Cafe  

Not just delicious smoothies, this fast growing cafe also serves up flat breads, wraps, and more to hungry customers. Clocking in a record-breaking summer of sales, Tropical Smoothie had a 22.1% increase across the U.S. in the most recent fiscal year. The company’s CEO recently shared that he felt consumers were turning to the brand for a healthy option during the pandemic. A diverse menu and seasonal specials keep things fresh, and keep up the foot traffic, at Tropical Smoothie. 

Chick-fil-A

Known for its impeccable service and its incredibly long drive thru lines, Chic-fil-A is the perfect tenant for proven success. Ranked as the 3rd fastest growing restaurant chain, customers won’t wait in those lines very long. Efficiency and happy customers are the hallmark of Chic-fil-A. And the brand has diversified during the pandemic to offer popular meal kits. All the more reason for customers to visit the business frequently, and make sure your parking lots are full. 

Jersey Mike's Subs

Jersey Mike’s has seen solid sales growth of 17.8% in 2020. The sub sandwich chain famously invested $150 million nationwide to retrofit its stores for increased safety during the pandemic, and they also recently innovated their delivery and catering services to further guard against contamination. This is a brand that is taking health and safety seriously, and the market is rewarding them. A trustworthy brand like Jersey Mike's could be a great addition to fill your latest vacancy. 

While success is never guaranteed, these brands have proven to be more than profitable during what has been, for most, a very rough year. Interested in learning more? Schedule a Retailsphere demo today and get a more in-depth look at these 5 brands—and many more. 

The post How Quick Service Restaurants (QSRs) are Winning during Covid-19 appeared first on Retailsphere.

In our recent survey of shopping center managers across the country, we asked them which retailers had been most difficult to deal with during the Covid-19 pandemic. Unsurprisingly, 28% of the respondents told us a restaurant had been their most difficult tenant.

In the same survey, we also asked which tenants had been the best during the Covid-19 pandemic. 22% of our respondents told us that a grocery chain was their best tenant. Given the number of people who have been spending more time, including cooking at home, this too isn’t much of a surprise either. Behind grocery chains were specialty retailers and big box retailers, both accounting for 15% of the “best Covid-19 tenants.”

But the best individual tenant according to our survey was Walgreens. 10% of our respondents specifically cited the brand as their best tenant during the pandemic. The only other specific brand to be mentioned more than once was Publix, who also made up 6% of the responses.

Across the board, good tenants have been paying rent on time throughout the pandemic. While this is important, most of our respondents told us that their best tenants were also good communicators who rarely complained. These brands let them know what was happening and didn’t try to avoid talking to the shopping center. 

So how will the pandemic change how these shopping centers fill future vacant spaces?

When we asked what retailers they would focus on moving forward, every single respondent included grocery as one of their target retailers. Jeremy Landsman from Avenue Real Estate

Stated, “The ideal business [moving forward] would be an upscale grocery stores such as Publix or Fresh Market.”

After grocery, 56% of our shopping center respondents told us they would look for more fast food restaurant tenants and 39% told us they would look at pharmacies. And when it comes to the scale of future tenants, 33% of our respondents specifically used the term “national chain” when referring to which retailers they would be looking to fill their vacancies.

While many of our interviewees said that they would try not to let the pandemic affect their leasing practices in the future, Lisa Talley, Property manager for Aria Development in Oklahoma told us, “they will be looking for more essential business and less of the specialty stores when it comes to leasing after Covid19.”

While over time, retail will start to transition back to a state of “normalcy,” the new normal will likely include fewer local brands and specialty shops based on the feedback we’re hearing from shopping centers across the country. Most stores will likely be more oriented towards essential needs, with products shoppers view as necessities.

Are you looking for expanding grocers, pharmacies, or food concepts? Sign up for a no-obligation Retailsphere demo and see how much simpler your retailer search can be.

The post Walgreens and Publix make the best tenants during the Covid-19 Pandemic appeared first on Retailsphere.

Great news. A big national-credit retailer wants a shopping-center space that's currently occupied by struggling mom-and-pop tenants who are barely hanging on in a lease-less, or "at will" basis. The timing seems right to issue these month-to-month occupants their proverbial walking papers and quickly shoo them off the premises to free up the square footage.

Perhaps. But landlords best be prudent, lest such deals get hung up in court. Landlords must still accord their lease-less boarders basic tenants rights before showing them the door. A notice to vacate is still required, among other legal requirements.

However, because there's no formal contract specifying otherwise, landlords need only issue such tenants the typical minimum 30-day notice, less in some states and up to 60 days in others, to quit, according to Stephen Michael White, CEO at RentPrep of Buffalo, New York, a commercial tenant-screening service. And no rationale need be given to evict at-will tenants, White added.

In addition, receipt of the eviction notice must be confirmed, so if landlords don't want to serve such tenants in person, mailing of the notice should be done by certified mail. The notice, following state or local law requirements, must typically state the tenant has to end its occupancy by a specific date of operation. A more expedient exception comes when an at-will tenant isn't paying the rent as agreed, in which case only a 14-day notice usually suffices.

In some instances, a landlord can unwittingly create a written rental agreement via email correspondence with an at-will tenant. Though such agreements are informal, a court may nevertheless find them to be a legally enforceable because they were put in print. Additionally, some jurisdictions this year enacted eviction moratoriums due to COVID-19, though many have expired at this writing.

There are several other legal gray areas to also ponder in the case of at-will tenant eviction, because some local and states laws are situational and subject to court interpretation. Most importantly, landlords must be careful not to break any laws while attempting to evict someone, at-will or not, said White. Actions such as shutting off tenant utilities, changing their locks or forcing them to leave without proper notice aren't legal and can result in judgments against landlords, he added. Non-lawful eviction reasons for commercial tenants include the occupants' racial, religious or familial orientations, their chronic health issues or a retaliation for complaints. Lawful reasons for tenant eviction typically include rent nonpayment, illicit drug use, property damage, health or safety violations, broken agreements, unpaid utility/common-area-maintenance payments, unauthorized pets and the owner moving into the property.

However, landlords must keep in mind that since at-will tenants have no definitive lease, there are no specific lease agreements that the tenant, in the eyes of the court, can actually violate other than rent nonpayment, damage to the property, disturbance of neighboring tenants or the introduction of health hazards to the property, according to Downers Grove, Il.-based O'Flaherty Law.

A tenant filing for bankruptcy can further muddy the waters. In such instances, an automatic stay is typically imposed on creditors, including landlords. Failure to grant such stays in pursuing eviction can lead to penalties and added legal costs, according to James Chen, director of trading and investing content at Investopedia.

Moreover, lessees can become at-will tenants -- also called tenants-at-sufferance -- by default in some cases, particularly when their rental agreements automatically convert them to month-to-month status when they stay past a lease-expiration date, according to business attorney Michelle Seidel, of the law-information website Legal Beagle. A written agreement, should it not specify an expiration date, generally creates a tenancy at will, she said.

Some landlords opt for a "cash for keys" flat-fee approach to avoid navigating the eviction legal system, enticing a tenant to exit faster and without complication. In cash-for-keys, a landlord simply pays a flat fee to tenants in exchange for their keys.

Sometimes there are other solutions to evictions. If a landlord needs an at-will tenant's space, and that business is a decent traffic generator, finding the tenant a different space there or at another center owned by the same landlord might be a wiser alternative, advisors say.

For a sublease tenant in an at-will property, the responsibility for a commercial lease is ultimately between the landlord and original master tenant, notes real estate attorney Manfred Sternberg, of Houston-based Manfred Sternberg and Associates. In most cases, a landlord must give consent to subletting, he said.

If there are pressing questions about at-will tenant rights or other tenant issues, landlords should always consult specific local and state laws, ideally through an attorney, White stressed.

Do you have an at-will lease you're in the process of ending? Looking for expanding retailers in your area to fill that space? Sign up for a no-obligation Retailsphere demo and see how we can help backfill your retail space with potential tenants.

This does not constitute legal advice. We recommend that you consult with legal counsel regarding any eviction process.

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