A Covid-era lease break for retailers looks set to become industry standard, WSJ reports

Real Estate

For Lease sign in window, Queens, New York.
Lindsey Nicholson | Education Images | Universal Images Group | Getty Images

Once-temporary rent breaks for retailers are expected to become the new standard among landlords, even after pandemic restrictions end and shopping rebounds, the Wall Street Journal reported Tuesday.

Mall vacancies in the U.S. hit a record high in April as retail stores have struggled to stay open after Covid shutdowns. 

Retailers are searching for new ways to survive, prompting many landlords to offer percentage-rent leases — pegging monthly rent payments to a percentage of the tenant’s monthly sales — in place of traditional, fixed payments, the Journal reported. 

Those flexible leasing agreements allowed retailers to manage costs and have been particularly helpful for new retailers, the Journal reported. Now brands are increasingly demanding percentage-rent leases, according to the report.

Read more about percentage-rent leases in the Wall Street Journal.

Articles You May Like

Fed needs to cut rates at least five times next year, portfolio manager says
There is still time to reduce your tax bill or boost your refund before year-end. Here are some moves to consider, experts say
Lululemon shares fall as retailer gives tepid holiday outlook despite strong start to shopping season
With or without loan forgiveness, fewer students are enrolling in college, questioning the return on investment
A 401(k) rollover is ‘the single largest transaction’ many investors make, expert says. What to know before doing it