The pandemic has opened the door to a whole host of negotiations about rent abatements, other concessions and lease adjustments between retail landlords and their tenants.
"The pandemic has highlighted the need for many leases to have a greater degree of flexibility to accommodate significant business interruption better," says Omar Eltorai, market analyst at Reonomy.
Eltorai says the pandemic has produced a greater interest in more flexible lease terms. Now, he expects the percentage lease concept to grow more popular. "While not new, the percentage lease concept will likely become more widespread – particularly in retail," he says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
