As Store Owners Sign More Short-Term Leases, Landlords Are Taking A Risky Bet On The Future Of Retail
Retailers and their landlords are engaged in a high-stakes game of risk right now. And it will be a few years until we find out which party is on the winning side. As thousands of retail leases come up for renewal, their duration is increasingly shrinking, as businesses grapple with an unpredictable future, look for ways to slash costs, stay flexible, and maintain leverage over their landlords, even after the health crisis abates. The risk is a two-way street, though. Because on one hand, in two or three years, mall and shopping center owners could have the chance to turn the tables back in their favor, by hiking rents or booting retailers out for another tenant. But more short-term deals could also could leave landlords with even greater vacancies down the line. Read more at CNBC.