Friday, June 12, 2020

Despite Essential Tenants Remaining Open, Shopping Center Landlords Saw 40% Drop in Rent Collections

NREI
While owners of grocery-anchored shopping centers have been able to benefit from the presence of essential retailers like supermarkets and pharmacies at their centers, that hasn’t meant they haven’t been grappling with substantial rent shortages. Multiple shopping center tenants have been trying to renegotiate their rents over the past few months, with mom-and-pop operators facing particularly challenging times.

“Many, if not most tenants, sought some form of rent relief or lease modification in response to COVID-19,” says Phil Voorhees, vice chairman at real estate services firm CBRE. However, “it varies tenant to tenant as to whether these are short-term or long-term modifications,” he notes.. . . more