There are many hurdles affecting retail deals, and there are a few things some landlords need in order to make long-term impacts for both their retail properties and their tenants. Each of these require cooperation from a retail landlord’s lender or capital partner. If a property owner does not receive grace periods on their loans, they cannot provide relief to business owners.

What is market rent anyway? Rent is a function of sales. Until retailers can get their sales back to what market used to be, landlords need the flexibility to get creative with their deal structures.

The most meaningful relationships are not where it’s all about how much rent a tenant can pay. Landlords are playing an even more pivotal part when it comes to supporting the longevity and overall growth of a retailer.

The relationship should be more collaborative and center around the long-term success of a retailer. A landlord can help alleviate risk and participate in the upside.

We need to protect the occupancy rates of a project for the health of the project. It is not at all costs. It should be done with a smart, consumer-focused strategy that helps healthy retailers and restaurants buy some time.

Source: Forbes (August 12, 2020)