COVID-19 has accelerated many dramatic trends in the retail industry. One thing has become clear: If many retailers are to survive, their rent structures may need to change.
One idea gaining traction is percentage-based leases, where the retailer pays a minimum rent and a percentage of its sales in rent.
Traditionally, landlords have been against percentage rents because they rely on the certainty of income, which affects their valuations, Tom Whittington, director, retail and leisure research at Savills, tells S&P Global Market Intelligence.
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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.
