Birmingham Partner Melinda Sellers was recently interviewed by Connect Money on the development of the taproom hospitality industry. She says taprooms and craft breweries have evolved into attractions that create viable revenue-growth opportunities for landlords and developers.

“Craft breweries attract tourists and locals alike,” Melinda explains, citing Southeast cities that have found retail success with brewery tenants.

For those looking to invest in the development of these spaces, Melinda provides advice from her real estate and beverage services perspective: “Landlords must negotiate brewery leases through the lens of a manufacturing facility” because of the sheer scale of buildout that is usually required. They must also be cognizant of state-specific requirements when leasing within mixed-use districts, as certain tied-house laws may limit alcohol distribution.

Finally, Melinda predicts that the craft brewery industry's trajectory will involve breweries extending beyond beer to cater to changing consumer tastes. “Facing the craft beer headwinds, craft breweries are leveraging their skills and equipment to boost sales and fill in gaps left by declining craft beer sales.” If stakeholders continue to adapt, the model will remain successful.

Read the full interview at Connectmoney.com.