The pandemic has triggered a slew of changed for the commercial real estate industry, and lease structures are no exception. Gary Glick, a partner at Cox, Castle & Nicholson LLP, has spoken about new lease provisions that are on the table at retail lease negotiations. One push from tenants is to link rent to gross revenue to protect tenants in the event of further business closers due to COVID-19 .

“Many retail tenants are attempting to negotiate provisions in their leases providing that, if a COVID-19 restriction is imposed on their business after they have opened substantially all of their premises, they will retain the right to close or pay base rent based upon a percentage of their gross sales,” Glick tells “Landlords will want to incentivize such tenants to stay open despite the restrictions because maintaining a proper tenant mix is critical to achieve maximum synergy for the shopping center. In addition, it allows the landlord to continue to receive some rent and 100% of the tenant’s share of taxes, insurance and common area expenses.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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