Retail sales are up for the most part, and several chains are upping their expansion plans. But retailers en masse could still look for rent concessions in the near future.
What could apparently drive those requests is an increase in commodity prices.
But according to Richard Sokolov, president and COO of Simon Property Group, if it wasn't commodity prices, retailers would be coming to his firm asking for a break for one reason or another. Three years ago, for example, it could have been healthcare or gas prices, he said during Simon's first-quarter earnings call.
"Historically, the tenants will bring forth any fact that they can put on the table to try and argue for lower rent," Sokolov said. "We can hold our own in those conversations."
Maybe the country's largest mall and outlet owner can do well in those discussions, but this could be bad news for smaller landlords who are seeing rents just start to rebound from the recession.
Do you think this will be a factor in dealmaking at the ICSC ReCon show later this month in Las Vegas? Or are we a ways out from commodity prices dominating landlord-tenant discussions, if at all?
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