Wholesale : Your Source for Wholesalers, Distributors, Importers and Manufacturers

Article Search

Return results from:




Wholesale News & Articles

INDEPENDENT RETAILER magazine is now the official news outlet for Wholesale Central visitors. Each monthly issue is packed with new product ideas, supplier profiles, retailing news, and business strategies to help you succeed.

See new articles daily online at IndependentRetailer.com.


Landlords Loosen Up

Apr 1, 2009

Better late than never seems to be the new theme for retail landlords. Instead of simply evicting struggling tenants, several retail developer/managers are deferring rents to maintain occupancy levels. The largest retail developer in the U.S., 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 CEO.

With large malls housing up to 200 stores, anywhere between 20 and 40 stores come up for renewal annually during a normal time, noted Steven Greenberg, president of the Greenberg Group, an advisory firm based in Hewlett, NY. Today's climate is keeping leasing representatives busier than usual. "The good news is that there are some great locations available at good rents," Greenberg said. Tenants that are either suffering, pulling back or out of business have vacated some of the country's premier centers.

Some retail centers are offering inducements to remain occupied. One way some developers are helping is by deferring rent for limited periods. "Landlords will take 10 percent, 20 percent and just tack it on," said Lon Rubackin, managing partner of GFI Retail Group, New York. "We'll want it a year from now, two years from now."

Rent forgiveness, however, is not in landlords' plans, said Howard Kline, a lawyer and real estate broker based in Los Angeles. Landlords must establish a rent that tenants can live with to keep a center filled. He acknowledged that assistance to tenants is available. Among the options are short term leases just to keep a center occupied. Beyond collecting the rent, it is in landlords' interest to make their centers stay lively and draw traffic, these experts noted.

Topic: Wholesale News

Related Articles: retail 

Article ID: 984

Printer Friendly

Entire contents ©2016, Sumner Communications, Inc. (203) 748-2050. All rights reserved. No part of this service may be reproduced in any form without the express written permission of Sumner Communications, Inc. except that an individual may download and/or forward articles via e-mail to a reasonable number of recipients for personal, non-commercial purposes.

Wholesale Central is a B2B directory that helps wholesale buyers find wholesale suppliers and products. When you find a supplier, please follow the link to their web site where you can do business with them directly.

Sumner Communications, Inc. | 24 Stony Hill Rd. | Bethel, CT 06801