Retail landlords and tenants has been saved
Retail landlords and tenants
Friends or foes?
With the current wave of retail closures and occupier requests for rent concessions, the retail landlord and tenant relationship is under more strain than ever before. A growing sentiment amongst retailers is to move away from traditional leases with upward-only rent reviews towards more flexible leases with rents linked to turnover. However, a turnover based model, creates a number of significant challenges for landlords from the operational, financial and valuation point of view:
- How do you measure profitability of stores in the multi-channel word and how will that data be made transparent to landlords?
- How do you value turnover-based rents?
- Should financial debt arrangements be also modified to share risk and reward on equitable terms?
Retail landlords and tenants – friends or foes? is our take on the market conditions. Download the article.