Facing uncertain consumer demand amid reduced levels of operation, they’re pushing for percentage leases. “We try to avoid that at all costs,” Maloney said of percentage rent deals. Declining to name tenants, Maloney said the lease requests are “tenants’ way of trying to force rent reductions. Most landlords don’t do well with threats. The leases are comparable to prior leases, but they’ve turned into variable leases and tenants are pushing back on the five and 10- year terms.” Two years is a popular length.

Source: Forbes June 30, 2020 17:48 UTC