There have been many anecdotal discussions about lease negations occurring between landlords and their restaurant and retail tenants.
In a recent post, JLL put actual numbers behind these trends. From July to October, JLL completed 463 lease restructures on behalf of retail and restaurant clients in the U.S. That resulted in $110 million in long-term occupancy cost reductions, which is more than double what it completed in the same period last year.
One trend noted among these restructures is that landlords are offering rent reductions in exchange for lease extensions. It is a win for both sides: Cheaper rents give retailers a chance to increase their profit margins, while banks favor longer leases. That helps the landlord when it's time to refinance and sell.
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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.
