Renegotiating Retail Mall Leases When Co-Tenancy Occupancy Drops Below 60%
When an anchor department store closes in a shopping center, foot traffic crashes. Here is how retail brand real estate directors enforce co-tenancy rent reductions.
Amit KasliwalCEO & Founder, Dehurdle
April 19, 20224 min read
The Co-Tenancy Rent Abatement Script
Recommended Spoken Script
What to say to the commercial landlord: "Under Section 18.2 of our retail lease, our base rent is contingent on maintaining at least 70% total gross leasable mall occupancy including two department store anchors. Following Nordstrom's closure, occupancy has fallen to 54%. We are legally exercising our contractual right to convert to 5% percentage rent in lieu of minimum base rent."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice retail lease negotiations in Dehurdle.