As more of us see new mixed-use developments popping up, it’s worth thinking about what these spaces mean for our businesses, especially if you’re approaching a renewal or considering a new location. We know the appeal: built-in foot traffic from residential units, a modern vibe, and often, new construction. But there are specific details in these vertical layouts that can impact our bottom line, and one of the biggest considerations, particularly for food service, is HVAC and venting.

This article from Aquila Commercial makes a really good point about the specialized systems required for food tenants in vertical mixed-use buildings. We're talking about dedicated exhaust systems, grease traps, and often, more complex climate control. These aren't minor expenses; they significantly increase build-out costs. The good news, though, is that developers often recognize the immense value a quality restaurant or café adds to their project. This can translate into more substantial tenant improvement allowances (TIs) during lease negotiations. It's a key area where we can push for better terms, especially if our business brings a unique draw to their development.

The takeaway here is to be extra vigilant during lease negotiations for these types of spaces. Don't just look at base rent; dig into who is responsible for the installation and maintenance of these specialized systems. If you're a food service business, understand that your unique needs can be a powerful negotiating chip for TIs. For any retail business in a mixed-use setting, understanding the infrastructure limitations and shared costs is crucial. We’d love to hear if any of you have experience negotiating TIs for specialized systems in mixed-use developments – share your stories in the forum!