When retailers evaluate leasing space in a shopping center, the parking lot is just as important as the interior space. While many landlords focus on the fit-out costs and location, they often overlook how a poorly maintained parking lot can derail lease negotiations, impact property value, and expose them to serious legal and financial risks—especially when it comes to ADA compliance and trip-and-fall lawsuits.
I cannot tell you the amount of times I have been in the middle of lease negotiations with a shopping center owner trying to help them bring the parking lot up to a required standard the prospective tenant is looking for. It's much easier to add some fresh striping, update the handicap signs or fill a few thousand feet of cracks vs. milling and paving the lot to bring it up to a serviceable condition.
Landlords requiring a new tenant to "assume maintenance responsibility" of the parking lot will have a hard time getting them to accept it unless it's condition is in good - excellent condition.
For both landlords and tenants, keeping the parking lot and sidewalks in top condition is not just a matter of aesthetics—it’s a legal and financial necessity.
As retail landscapes shift and big-box retailers close locations, shopping centers are often left with vacant or “dark stores”—properties that may eventually reopen, be leased to a new tenant, or be sold. While landlords and property managers focus on securing new tenants, one major capital asset is often overlooked: the parking lot.
A neglected parking lot can kill lease deals, devalue the property, and expose owners to major liability risks. Whether a retailer is looking to lease the space, a landlord is marketing the property, or an investor is considering a purchase, the condition of the parking lot is a critical factor in negotiations.
The COVID-19 pandemic has significantly accelerated the trend of retail store closures across the United States, leading to a substantial increase in vacant or "dark" retail properties. Several factors have contributed to this phenomenon, including a shift toward e-commerce, financial challenges among retailers, and changing consumer behaviors.
Rise in Store Closures
Predictions indicate that up to 45,000 brick-and-mortar stores could shut down over a five-year period due to rising costs and changing consumer habits. Major retailers such as Big Lots and Dollar Tree have announced plans to close over 1,500 stores in 2025 alone. Similarly, specialty retailers like JoAnn Fabrics and Crafts are undergoing significant closures, with JoAnn planning to shut down 530 locations nationwide as part of a restructuring plan following bankruptcy filings.
Impact on Shopping Malls
The closure of anchor tenants has left many shopping malls struggling to maintain foot traffic and occupancy rates. For instance, the Sunrise Mall in New York is facing further decline as retailers like Hot Topic announce closures, contributing to the mall's downturn. This trend has led to predictions that up to 45,000 physical stores across the US could shut down over the next five years due to rising costs and changing consumer habits.
After the building itself, the parking lot is the most expensive capital asset on a commercial property. Yet, many landlords and retailers assume that because a store is closed, asphalt maintenance can wait. That assumption can cost you hundreds of thousands—even millions—of dollars when you need to repair or replace a failing lot.
Parking lots begin to deteriorate immediately when left unmaintained. Without routine care:
By the time a new tenant or buyer is interested, what could have been a $10,000 annual maintenance expense becomes a $500,000+ full-depth reconstruction project.
If you own a shopping center or standalone retail property that once housed a national chain, asphalt conditions will play a major role in your ability to attract a new tenant or buyer.
🚧 Lower Property Value – A poorly maintained lot signals neglect and justifies lowball offers from buyers.
🚧 Lost Leasing Opportunities – National retailers seek turnkey spaces—a failing parking lot is a dealbreaker.
🚧 Higher CapEx Costs – Deferred maintenance means pavement reconstruction, which is 5-10x more expensive than routine repairs.
For retailers leasing dark stores, it is common for most lease agreements to include specific responsibilities related to the maintenance of the parking lot. This means that if you, as a retailer, are required to repair and maintain the parking lot before returning the property to the landlord, any deferred maintenance can lead to a significant increase in your costs.
The expenses associated with neglecting regular upkeep can quickly escalate, turning what might have been manageable repairs into costly overhauls. By adopting a proactive approach to parking lot maintenance, you can effectively avoid hefty end-of-lease penalties and prevent unexpected repair bills from catching you off guard. Regular inspections, timely repairs, and consistent upkeep not only ensure compliance with lease terms but also safeguard your financial interests by minimizing the risk of incurring substantial costs at the end of your lease term.
Whether you’re a landlord looking to re-lease or sell a dark store or a retailer hoping to reopen in the future, here’s how to keep your asphalt in good shape:
✅ Annual Crack Sealing – Prevents small cracks from becoming potholes.
✅ Sealcoating Every 3-5 Years – Protects against UV damage, oxidation, and water intrusion.
✅ Pothole Patching – Addressing small failures early avoids massive structural damage.
✅ Drainage Maintenance – Ensures water doesn’t undermine the subbase and cause premature failure.
When retailers evaluate a shopping center or standalone retail space, they don’t just look at the building—they assess the entire customer experience, starting in the parking lot. A deteriorated parking lot can:
1️⃣ Lower Lease Rates & Increase Concessions
2️⃣ Reduce Tenant Interest & Delay Leasing
3️⃣ Negatively Impact High-Traffic & Drive-Thru Retailers
4️⃣ Hurt Anchor Tenant & Big-Box Retailer Deals
5️⃣ Create ADA Compliance & Accessibility Issues
Bottom Line: If the parking lot isn’t well-maintained, retailers will negotiate for lower rents, delay deals, or walk away entirely—costing landlords valuable time and money.
From an insurance standpoint, a failing parking lot is a major liability. Deferred maintenance can lead to:
Example: A pedestrian trips over a pothole in front of a former department store and files a lawsuit against the property owner. If it’s proven that maintenance was ignored, the landlord may be held liable for damages, legal fees, and court costs.
Example: A retail plaza with faded ADA striping and inaccessible ramps gets hit with an ADA lawsuit. The landlord is forced to settle the case and restripe the lot, delaying lease negotiations and costing thousands.
Neglecting the parking lot isn’t just a leasing issue—it’s a legal and financial risk that can cost landlords millions.
A proactive parking lot maintenance strategy is the best way to protect property value, secure stronger lease deals, and reduce liability exposure.
Here’s how to keep your retail property competitive:
✔️ Annual Crack Sealing & Sealcoating – Prevents cracks from spreading and protects against UV and water damage.
✔️ Pothole & Asphalt Repairs – Keeps the surface smooth and safe for vehicles and pedestrians.
✔️ ADA Compliance Audits – Ensures proper handicapped spaces, ramps, and accessibility features.
✔️ Re-striping & Signage Updates – Improves parking flow, visibility, and curb appeal.
✔️ Lighting & Security Enhancements – Reduces liability risks and improves customer confidence.
If you own or manage a shopping center, your parking lot is a direct reflection of your property’s value. Retailers prioritize locations that offer a safe, well-maintained, and accessible experience for their customers.
Landlords who invest in proactive parking lot maintenance can:
✔️ Negotiate higher lease rates
✔️ Attract national retailers & anchor tenants
✔️ Avoid costly liability claims & insurance hikes
✔️ Prevent ADA compliance lawsuits
Bottom Line: A well-maintained parking lot isn’t just a cosmetic improvement—it’s a critical factor in lease negotiations, legal risk management, and long-term property value protection.
If you own or manage a vacant retail property, don’t wait until it’s time to lease or sell to address parking lot maintenance. A deteriorated parking lot can kill lease deals, lower property value, and expose landlords to costly lawsuits.
✅ For landlords, a well-maintained lot secures higher rents, attracts strong tenants, and minimizes liability risks.
✅ For retailers, it ensures a positive customer experience, brand alignment, and a safer shopping environment.
Need help ensuring your parking lot meets retail leasing and liability standards? Let’s talk about a maintenance plan that protects your investment and keeps your shopping center competitive.
Don’t let a neglected parking lot cost you your next big lease deal. Let’s discuss how a proactive asphalt maintenance plan can protect your investment and keep your retail property market-ready.