The full article appears in the June edition of Shopping Center Business.
In the face of near-full occupancy rates across retail properties—95.9% nationally, according to Nareit—landlords are increasingly turning to creative, non-traditional income streams to drive growth. With limited room for rental expansion through new leases, asset managers are “squeezing the lemon,” seeking out ancillary income opportunities to maximize the value of every square foot.
Chris Ressa, executive vice president and COO of DLC, brings a unique perspective to this evolving conversation. As the operator of over 70 open-air shopping centers across the U.S., DLC is well-positioned to explore innovative uses of space, particularly rooftops. Ressa notes that shopping center roofs hold significant potential for leasing opportunities—particularly for solar installations—but only under specific conditions. “We will only lease the roof at a shopping center where we have a new roof and can get market rent for that roof,” he states.
The key to unlocking this value, Ressa explains, is understanding the market economics around solar providers and the policy incentives that make such leases financially viable. DLC typically bids out these roof leases to multiple solar providers, ensuring they command fair market rents. Importantly, all capital expenditures (CapEx) related to solar installation at DLC properties come from the solar provider—not the landlord—mitigating risk while securing long-term income.
Ressa emphasizes that while solar is a promising use of unused roof space, not all properties qualify, and federal tax incentives are crucial to making these deals work. States like New Jersey, New York, and Massachusetts are currently among the most favorable due to generous incentive programs. However, pending federal legislation could reduce the viability of these deals by scaling back investment tax credits.
DLC’s strategy reflects a broader industry trend toward reimagining every part of a shopping center—not just leasable ground-floor space—as a potential income-generating asset. Whether leasing for solar, cell towers, or seasonal activations, landlords are increasingly blending innovation with pragmatic asset management.
In a market where supply constraints limit traditional growth levers, Ressa and DLC exemplify the forward-thinking approach needed to generate long-term value. Their success highlights how landlords can adapt to new economic realities while still supporting tenants and enhancing property performance.
