As retailers that have traditionally served as mall anchors, be they department store chains or big-box players, announced major store closings this year, co-tenancy clauses have become an area of risk in a shaky market.
clauses first became a concern for retail property owners 10 years ago,
as the Great Recession put pressure on many tenants and store closings
and bankruptcies spiked, according to Greg Maloney, president and CEO of
Americas retail with real estate services firm JLL. “We have started
removing these in the past five-10 years from anchor tenants’ leases, as
anchors are not what they used to be in regards to impact on in-line
tenants,” he notes.. . . more