A Special Advertising Supplement to Shopping Center World

McCarran International Airport in Las Vegas, Nev., boasts a sign as flambouyant as the town's image.(Photo courtesy of Pasadena, Calif,-based Hunt Design Associates.)

Sign on the dotted line?

Of that group of respondents, nearly 70% indicated that signage is part of the store's overall design plan, with 30% noting that store signs are among the primary design features. If signage is indeed that important to retailers, what are the ramifications of signage restrictions on the industry and, in particular, the lease negotiation process?

Although 53% said they would not walk away from a lease opportunity based on signage restrictions, nearly 33% of respondents said they would in fact decline a potential lease if they were not able to secure proper signage. More then three-fourths (76.3%) of respondents indicated the centers in which their stores are located place restrictions on exterior signage as a component of the lease agreement.

Of that percentage, 67% reported that signage restrictions are negotiable in the leasing process, while more than 22% said they were not. Of the 103 retailers that indicated signage restrictions for the centers in which they are tenants, more than half pointed to sign size as a potential leading cause of lease conflict, since size is the most common restriction. (Color was the next highest reported signage restriction, with 22.3% reporting it as a potential source of conflict.)

Respondents were encouraged to write in explanations of why signage restrictions would not be a lease deal-breaker. A common thread in these responses was on location: If  retailer is given a lease opportunity in a strong location, they could be more willing to negotiate signage requirements. Other responses pointed to the ability and willingness to compromise as a way to resolve signage differences. In emphasizing how flexibility in rules is a give-and-take endeavor, one retailer responded. " We are as flexible as our landlords".