Every net lease landlord dreads the call. The one where thetenant, say a retailer, informs the landlord that Amazon is killingit and it will need a 25% rent reduction. And just like that, thelandlord comes face to face with the reality that net lease is notthat fabled asset class where all you have to do is sit back andwait for the rent checks to come rolling in. "Those landlords, whothought this was a passive investment for 15 years, aren't preparedto make a decision on something presented by the corporate tenant,"says Noah Shaffer, senior director of asset management forConfidant Asset Management.
In some cases, retailers aren't even offering to negotiate withtheir landlords. They're just closing up shop.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
