By: Ted Zangari
Retailers are reportedly creating “dark stores” within their retail premises for use as fulfillment centers—raising a host of interesting questions: At what point does such activity become a warehouse/distribution use that’s in conflict within local zoning ordinances? Does such activity violate one or more of the prohibited use (“dirty dozen”) restrictions typically found in shopping center leases? Will delivery trucks and vans stress the parking lot and internal roadways? If such activity extends beyond normal shopping center hours, who pays for lighting, security, etc.? If the tenant has agreed to pay percentage rent to its landlord based on sales made in the store, should goods delivered from the premises be included in sales?
If this was a temporary phenomenon in response to the current pandemic, it wouldn’t be news—what’s newsworthy is that the construction of automated “mini-warehouses” and “micro-fulfillment centers" inside stores appears to be a permanent trend.
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