Reply to Palisades: Safeway is closing

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
I don't see how these covenants are anything but clearly anti competitive positioning, and measured with something like a herschmann herfindal index I could see a powerful argument emerging that the stores have signicant power.  [/quote]

They're standard in the retail industry. Ever notice why that local strip mall has only one grocery store not two? Or only one Mexican fast-casual restaurant? Only one gourmet burger place?

Because the lessee made the owner of the shopping center agree to that.

As for Safeway, they're only asking for a covenant on one property in the Palisades, not every property in the Palisades. They should be allowed to ask for it, and the buyer can choose to accept or reject it. The government does not need to get involved. The free market is functioning perfectly well here.[/quote]

What a terrible example. In all those cases the convenant against duplicate buildings are for current owners/tenants, not ones that sold their interest and rights and moved on. By trying to redirect grocery retailer their store two miles away, Safeway is trying to preempt the role of urban planner and give the neighborhood A shiv on the way out the door [/quote]

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