Real Estate

For Lease sign in window, Queens, New York.
Lindsey Nicholson | Education Images | Universal Images Group | Getty Images

Once-temporary rent breaks for retailers are expected to become the new standard among landlords, even after pandemic restrictions end and shopping rebounds, the Wall Street Journal reported Tuesday.

Mall vacancies in the U.S. hit a record high in April as retail stores have struggled to stay open after Covid shutdowns. 

Retailers are searching for new ways to survive, prompting many landlords to offer percentage-rent leases — pegging monthly rent payments to a percentage of the tenant’s monthly sales — in place of traditional, fixed payments, the Journal reported. 

Those flexible leasing agreements allowed retailers to manage costs and have been particularly helpful for new retailers, the Journal reported. Now brands are increasingly demanding percentage-rent leases, according to the report.

Read more about percentage-rent leases in the Wall Street Journal.

Articles You May Like

HSBC beats expectations in first quarter earnings; CEO Noel Quinn to retire
A CVS Health pharmacy in Vegas becomes first to join new national pharmacy union
The Federal Reserve holds interest rates steady, offers no relief from high borrowing costs — what that means for your money
Microsoft signs deal to invest more than $10 billion on renewable energy capacity to power data centers
An important student loan forgiveness deadline is hours away — and it takes under 15 minutes to apply