Quote:
Originally Posted by Atlriser
I find it hard to believe that a noncompete clause exist at Atlantic Station. That sounds very contradictory to everything happening their and furthermore, how do you define who competes with who? Retail is so competetive overall that restaurants compete with starbucks compete with ice cream shops compete with Publix so this idea seems utterly ridiculous and just a rumor floating about IMO.
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While it might not be true, it is far from ridiculous. This is quite a common agreement in malls, where a specialty retailer will not agree to lease space unless the mall will guarantee that the mall will not rent space to their competitors. In theory this should not be part of capitalism since it stifles competition but it is pretty much part of the game these days. Just look at how many empty Wal-Marts and Home Depots there are around the country when Target and Lowes would be more than happy to move into the locations if the former tenant would sell it to them. Often even after the property is sold, there is a restriction on the deed that does not allow the land to be used for a competitor of its former owner. Business is so much easier when you can keep your competition out of the market and it is very much worth the minor loss of some real estate income in exchange for exclusive access to the local market.
In Atlantic Station's case, it very well may be that Publix would not agree to open a sorely needed grocery store unless they were guaranteed exclusive control of the grocery market in Atlantic Station.