Mar
18

What Are Retail Tenants Up to Now?

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I just read where about 700 shopping center owners and managers across the United States recently received form letters from a major big-box retail tenant. The letter stated that “since times are tough, we’ve decided to unilaterally reduce our rent by 25 percent”. The retailer included checks to the landlords for the newly decreased amounts. The self imposed rent reduction translates into a $30,000 annual reduction per lease and total annual savings of $21 million for the retailer.

If you are the landlord, and the resulting rent reduction results in a $325,000 to $375,000 hit to the property value, what do you do? Please give us some feedback in the comments section below.

Mike Dodds
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    Categories : National News

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