Tuesday, March 17, 2009

Owners and tenants wrestle over rent reduction requests

I am quoted extensively in the March 2009 Florida Loan Specialist Weblog about the ongoing issue of rent reductions for retailers in these rocky times. 
And in Manhattan, Sierra Realty Corp. President Jim Wacht is dealing with a local retailer that is downsizing from 11 stores to seven stores as part of its bankruptcy reorganization. “This retailer is using bankruptcy to cherry-pick the leases and has basically given its landlords an ultimatum–the stores that will stay open are the stores that have the lowest rents,” he says. “They’re really putting the screws to the landlords, and if my client loses this tenant, it’s really going to cost him. He feels like he has no choice.”

It's an excellent, useful article.

1 comment:

DD said...

Hi James. It sounds as if your client did not financially plan for vacancy and now he is between a rock and a hard place.
David Drescher