<PAGE>
                                                                   EXHIBIT 10(z)



                    AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT


         THIS AMENDMENT NO. 1 dated as of May 13, 2003 amends the Employment
Agreement by and between MALAN REALTY INVESTORS, INC., a Michigan corporation
(the "Company"), and ELLIOTT J. BRODERICK ("Executive") dated as of July 16,
2002 (the "Agreement").

                                    RECITALS

         The Company has previously entered into one or more Option Agreements
with Executive pursuant to the Malan Realty Investors, Inc. 1994 Stock Option
Plan (the "Option Plan").

         In August 2002, the Company's shareholders approved a plan of
liquidation for the Company (the "Plan of Liquidation"). Each time the Company
makes any distributions to its shareholders pursuant to the Plan of Liquidation,
the market price of the Company's common stock is expected to decline. If
Executive were to exercise options following a liquidating distribution,
Executive would be in the anomalous situation of having to sell the shares
acquired upon exercise of the options at a lower price than what could have been
expected absent liquidation.

         The Company wishes to correct this anomalous situation and give
Executive the benefit of the options by allowing Executive to participate in
that portion of liquidating distributions that exceed the exercise price of the
options.

         Accordingly, the parties agree as follows:

         1.       CASH BONUSES IN LIEU OF OPTIONS.

                  (a) Executive hereby agrees to the cancellation by, and
         hereby surrenders to, the Company effective as of the date of this
         Amendment all stock options held by Executive under the Option Plan,
         all of which are more particularly described on EXHIBIT A.

                  (b) In consideration of such cancellation and
         surrender, the Company agrees than when aggregate liquidating
         distributions per share made to Company shareholders pursuant to the
         Plan of Liquidation after the date of this Amendment reach the levels
         set forth below, Executive shall be entitled, subject to the terms and
         conditions set forth herein, to receive a cash bonus (each, a
         "Liquidation Bonus") such that aggregate Liquidation Bonuses paid to
         Executive pursuant to this Section 1 total the amount set opposite the
         applicable level of per share liquidating distributions (which amounts
         represent liquidating distributions in excess of the average price of
         all of Executive's options, regardless of when first exercisable):



<PAGE>


<TABLE>
<CAPTION>
        AGGREGATE PER SHARE                       CUMULATIVE AMOUNT OF
     LIQUIDATING DISTRIBUTIONS                      LIQUIDATION BONUS
<S>                                               <C>
     $           4.25                              $      7,500
                 4.50                                    15,000
                 4.75                                    22,500
                 5.00                                    30,000
                 5.25                                    37,500
                 5.50                                    45,000
                 5.75                                    52,500
                 6.00                                    60,000
                 6.25                                    67,500
                 6.50                                    75,000
                 6.75                                    82,500
                 7.00                                    90,000
                 7.25                                    97,500
                 7.50                                   105,000
                 7.75                                   112,500
                 8.00                                   120,000
                 8.25                                   127,500
                 8.50                                   135,000
                 8.75                                   142,500
                 9.00                                   150,000
</TABLE>

         For example, when aggregate per share liquidating distributions of
         $4.25 have been paid, Executive will be entitled to a Liquidation Bonus
         of $7,500. When aggregate liquidating distributions reach $4.50 per
         share, Executive will be entitled to receive another Liquidation Bonus
         of $7,500, resulting in cumulative Liquidation Bonuses of $15,000.

                  (c) Each Liquidation Bonus will be paid as soon as practicable
         after the applicable liquidating distribution is paid to shareholders,
         less any federal, state and local taxes required to be withheld
         thereon. If the Company makes a liquidating distribution in a form
         other than cash, the Company's board of directors shall in good faith
         determine the fair market value per share of the liquidating
         distribution for purposes of determining the amount of any Liquidation
         Bonus to be paid to Executive hereunder, which in the Company's
         discretion may be paid in cash or in kind.

                  (d) When the Company makes its final liquidating distribution,
         if aggregate liquidating distributions exceed $4.25 per share, the
         Liquidation Bonus relating to the final liquidating distribution shall
         be prorated based on the amount of the final liquidating distribution
         to the extent that the final distribution does not reach the next
         threshold for the payment of the next Liquidation Bonus. For example,
         if aggregate liquidating distributions of $7.00 per share have been
         made, Liquidation Bonuses totaling $90,000 have been paid, and the
         final liquidating distribution is $0.125 per share, Executive would be
         entitled to a final Liquidation Bonus of $3,750.

                                       2

<PAGE>





                  (e) Anything herein to the contrary notwithstanding, Executive
         shall not be entitled to a Liquidation Bonus to the extent that such
         bonus represents cash in excess of the exercise price of an option
         that, absent this Amendment, would have expired or terminated pursuant
         to its terms before the record date for the liquidating distribution to
         which the Liquidation Bonus relates (for example, if Executive ceases
         to be an employee of the Company within one year after the date of
         grant of the option for any reason other than death, disability or
         retirement).

         2.        ASSIGNMENT TO LIQUIDATING TRUST. The Company may form a
liquidating trust in connection with winding down the Company's business (the
"Liquidating Trust"). The Company may assign the Agreement, as amended hereby,
to a Liquidating Trust provided that the Liquidating Trust assumes each and
every obligation of the Company thereunder, including the obligation to pay
Liquidation Bonuses. Such assignment shall not be deemed a termination by the
Company entitling Executive to severance compensation from the Company pursuant
to the Agreement.

         3.       NO OTHER CHANGES.  Except as expressly amended hereby, the
provisions of the Agreement shall continue to remain in full force and effect.

                                         MALAN REALTY INVESTORS, INC.


                                         By:
                                            -----------------------------------
                                         Name:
                                              ---------------------------------
                                         Title:
                                               --------------------------------



                                         --------------------------------------
                                         Elliott J. Broderick




                                       3
<PAGE>

                                    EXHIBIT A

                                CANCELLED OPTIONS


<TABLE>
<CAPTION>
DATE OF AGREEMENT               NUMBER OF SHARES                 EXERCISE PRICE
-----------------               ----------------                 --------------
<S>                             <C>                              <C>
  06/17/1994                           25,000                         $17.00

  01/20/1995                           22,350                         $13.375

  03/19/1996                           15,250                         $14.375

  09/25/2000                            5,000                         $13.438
</TABLE>

                                       MALAN REALTY INVESTORS, INC.


                                       By:
                                          -------------------------------------
                                           Name:
                                                -------------------------------
                                           Its:
                                               --------------------------------





                                       ----------------------------------------
                                       ELLIOTT J. BRODERICK