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.
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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.
