|
Tuesday, 01 September 2009 |
|
|
The recession has not only left retail landlords and tenants
fighting for survival, but is also forcing the entire industry to reconsider the ways in which they negotiate and structure long-term contracts.
According to the Retail Bulletin, flexibility in payment structures, terms of engagement with specific retailers and initiatives to find economies of scale are suggested as solutions to help landlords and tenants work through the current downturn. However, formalising these agreements now will be critical for the long-term success of the commercial rental property market.
There's already proof out in the market of retail landlords bucking the trend of vacant properties because they've sat down with tenants, agreed new terms, and implemented them across their estate. The only way the retail market can combat the current crisis is through transparent discussions and clear agreements on a joint way forward with new and existing tenants alike.
|
