Search
 

Rents Can Wait – Sometimes

Better late than never seems to be the new theme for retail landlords these days.

By Debra Hazel | Updated on February 09, 2009

Better late than never seems to be the new theme for retail landlords these days. Rather than simply evicting struggling tenants, developer/managers are deferring rents to maintain occupancy levels. The largest retail developer in the US, Simon Property Group, noted in its recent year-end conference call that it is working with tenants on a case-by-case basis to keep its centers occupied. And it’s not alone.

“We are holding our margins and our rents where we can and that is in virtually all of our very good properties and where we have a tenant that we believe is in extreme financial distress, we’re trying to work with them to come up with a mutually acceptable basis for maintaining their occupancy in the portfolio,” said Rick Sokolov, Simon’s president and chief operating officer.

With large malls housing up to 200 stores, anywhere between 20 and 40 stores come up for renewal annually during a normal time, notes Steven Greenberg, president of the Greenberg Group, a Hewlett, N.Y.-based advisory group. Add in today’[s troubles and leasing reps remain busy, particularly at the best centers.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.