Keeping a stable roster of brick-and-mortar retail tenants isn't a certainty in today's shopping landscape, but a novel lease structure gave Frankfort, Kentucky's Franklin Square a boost.
In February 2024, landlord and developer RJ Thieneman signed discounter Five Below on for a 10-year lease in its 1975-built retail storefront. The agreement hinged on what brokers involved in the deal call a revenue-sharing model, which links the tenant's success with that of the landlord. According to a description from the broker, the lease strategy minimizes risk for Five Below, allowing the retailer to revitalize its surroundings and establishes a foundation for sustainable growth.
The project was selected by a panel of local industry professionals as the winner of the 2025 CoStar Impact Awards Lease of the Year for Lexington.
With its attention to joint economic success, the lease agreement could serve as a model for how thoughtful lease agreements can drive economic, social and environmental progress.
About the deal: Discount retail chain has agreed to occupy 9,084 square feet at 1303-1375 US Highway 127 S in this Class B shopping center for a decade-long term. The store pays a $13,000 monthly rent and moved into its new location in August 2024. According to its website, Five Below has more than 2,000 stores across the United States.
What the judges said: "Use of a creative and flexible rent structure allowed the parties to maintain a high level of occupancy at a center that anchors this submarket and continue to drive customer traffic for the benefit of all retailers in the area," said John P. Miller, assistant vice president at NAI Isaac.
They made it happen: Brian Thieneman, chief executive officer, Thieneman Seay Management.