As we step into 2025, multi-unit operators in the retail and restaurant industries find themselves at a critical juncture. Shifting consumer behaviors, rapid technological advancements, and evolving lease dynamics are redefining the landscape. To stay competitive, operators and property managers must anticipate these changes and adjust their strategies accordingly.
From sustainability to flexible leasing options, let’s dive into the top 10 trends shaping commercial leasing in 2025—and how understanding lease management can make or break your success.
1. Omnichannel Mastery
Consumers in 2025 expect seamless transitions between online and offline experiences. Retailers are doubling down on options like buy-online-pick-up-in-store (BOPIS), while restaurants prioritize streamlined delivery apps and loyalty programs.
Lease Management Implication:
For property managers, ensuring spaces are adaptable to hybrid operations is critical. Additionally, operators need lease terms that account for evolving omnichannel needs. At Property Works, we provide tools to help tenants track and adjust lease obligations as operations scale across channels.
2. Rise of Experiential Spaces
Unique, immersive experiences are driving foot traffic in retail and dining. From themed restaurants to interactive retail pop-ups, customers now prioritize connection over convenience.
Lease Management Insight:
With the rise of experiential spaces, lease terms often include clauses for renovations or co-branding. Property Works helps operators navigate these lease addendums, ensuring compliance while enabling creativity.
3. Sustainability Takes Center Stage
Eco-conscious consumers are demanding greener practices—from energy-efficient operations to locally sourced materials. Many landlords are integrating sustainability measures into leases, such as requiring tenants to participate in recycling or use renewable energy.
Lease Management Implication:
Green clauses in leases are becoming common, but they can also lead to unexpected expenses. Property Works ensures these clauses are clearly understood and accounted for in your lease management strategy, so there are no surprises.
4. Flexible Lease Structures
Uncertainty in the economy has driven demand for flexibility in leasing. Operators are seeking short-term leases, percentage-based rent models, and options for expansion or downsizing.
Lease Management Impact:
Property Works simplifies lease analysis, allowing operators to evaluate flexible leasing options quickly. Our software ensures that multi-unit operators can adjust to market changes while maintaining compliance with lease terms.
5. Accounts Payable Automation in Lease Management
As lease portfolios grow, managing accounts payable for rent, CAM (common area maintenance), and other charges has become increasingly complex. Automation is no longer optional—it is essential.
How Property Works Helps:
With Sitehub’s AP module, operators can automate rent payment workflows, ensuring accurate and timely payments. This reduces administrative burdens and avoids costly errors or late fees.
6. ASC-842 Compliance Is Non-Negotiable
With financial reporting standards like ASC-842 continuing to influence how leases are accounted for, multi-unit operators must ensure compliance. Proper tracking of lease terms and obligations is critical for meeting regulatory requirements.
How Property Works Helps:
Our software simplifies ASC-842 compliance by centralizing lease data, automating calculations, and producing accurate financial reports. This ensures operators can confidently meet regulatory demands.
7. CAM Audits on the Rise
As landlords face increased operational costs, tenant overcharges for CAM fees have become more common. Operators are now prioritizing CAM audits to ensure they are not paying more than their fair share.
How Property Works Helps:
We provide tools to track and audit CAM charges, helping tenants identify discrepancies and negotiate accurate costs. With Property Works, operators can take control of their expenses and safeguard profitability.
8. The Growing Importance of Cybersecurity
Cybersecurity will become a paramount concern for property managers and lease administrators in 2025. The increasing reliance on digital platforms for managing leases and property data makes these systems attractive targets for cyberattacks.
Ensuring robust cybersecurity measures will be essential to protecting sensitive information and maintaining tenant trust. Staying vigilant against cyber threats will help safeguard operations and build a reputation for reliability and security.
Lease Management Impact:
Property Works robust cybersecurity measures are crucial as its lease management platforms face increased risks from cyberattacks due to the growing reliance on digital system for tenant and property data. By prioritizing strong security protocols, Property Works will safeguard sensitive information, uphold tenant trust, and ensure the reliability of its operations.
9. Data-Driven Lease Decisions
Data is becoming a critical driver in optimizing lease portfolios. Multi-unit operators are leveraging analytics to identify trends such as underperforming locations, optimal lease terms, and opportunities for renegotiation. Insights from lease data also help businesses plan expansion strategies and better allocate resources.
Lease Management Insight:
With tools like Property Works, businesses can access detailed reporting and analytics on their lease portfolios. This includes tracking critical dates, rent escalations, and occupancy costs, helping operators make informed, data-driven decisions to optimize profitability and reduce risks.
10. Technology Integration
Technology continues to revolutionize operations, with restaurants adopting AI for inventory and menu recommendations, while retailers implement AR tools and AI-driven personalization. Smart building technologies, digital directories, and other tech-forward amenities are also becoming must-haves for tenants.
Lease Management Insight:
As technology demands grow, lease agreements are incorporating more provisions around tech infrastructure, shared utilities, and maintenance costs. Property Works simplifies managing these complex agreements, ensuring you have clear visibility into tech-related expenses and obligations.
Strategies for Property Managers
- Invest in Tech Infrastructure: Ensure properties are equipped with state-of-the-art technology to meet tenants’ digital needs.
- Foster Collaboration: Work closely with tenants to support their branding and operational goals.
- Prioritize Adaptability: Offer flexible lease terms and space configurations to meet diverse tenant requirements.
- Enhance Tenant Mix: Curate a blend of national brands and local businesses to appeal to a broad customer base.
- Focus on Experience: Invest in property upgrades that enhance customer engagement and create a sense of place.
Conclusion
Multi-unit operators in the retail and restaurant industries are navigating an era of rapid change in 2025. By aligning with emerging trends—from sustainability to technology integration—property managers can provide the support and flexibility needed to help tenants thrive. A proactive, partnership-oriented approach will be key to building successful and resilient properties that cater to modern consumer expectations. Contact us today to learn more.
