Percentage rent is where a tenant pays a percentage of its sales once it has exceeded a certain base level of sales. The better a tenant does, the better the landlord does. If the tenant does not exceed the base level of sales, or the breakpoint, the landlord does not receive percentage rent. In most… Continue reading Percentage rent using different partial year methodologies
Experiential retail. Bricks and mortar stores as distribution points. Online sales returns. Showrooming. We are continuously bombarded with articles about the death of retail, the evolution of retail, stores closures, the death of retail being exaggerated, announced stores closings, announced store openings. While there seems to be little agreement about the future of retail, there… Continue reading Retail evolution and the need for lease language changes
There is no question that a tenant benefits from being granted an exclusive use in a shopping center. More often than not, an exclusive ensure that no other tenant in the shopping center shall have the same use as tenant granted the exclsuive. (Occasionally, an exclusive shall read something to the effect of “There shall… Continue reading Extracting value from an exclusive
A few weeks ago, we addressed the major differences between retail and office leases. While retail leases across categories have more similarities than differences, there are distinctions between retail leases in enclosed centers and retail leases in open air centers. Some may be obvious – there are no enclosed malls to heat and cool in… Continue reading Spot the difference! – Enclosed mall vs. open air center leases
This particular blog in not the Sunday blog addressing lease administration issues. It is an opinion piece. I’ll be back to the regular blog on Sunday. If you’ve clicked, you probably know the Monty Python reference. If you don’t know it, I’ll try to explain dry (but incredibly funny) British humor. The Dead Collector is… Continue reading Shopping Centers – “Bring out your dead!” “I’m not dead!”
This past week, we were working on a sizable shopping center acquisition in the Southeast. Part of the center had been a mall that was “de-malled,” while the balance was developed in two additional phases. The original mall became a series of big boxes, some traditional small shop retail, a few restaurants and a bit… Continue reading Why should you care about the definition of the “Shopping Center” in the lease?
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