Pressure from distressed New York retailers has softened landlord sentiment, allowing for lease restructurings
Brokers are largely optimistic that landlords will increasingly restructure leases
September 28, 2020
New York Retail broker sentiment survey highlights
- A survey of New York City retail brokers found that they are largely optimistic that landlords will increasingly restructure leases to help distressed retailers navigate the difficult post-COVID landscape.
- Over two-thirds (68.8%) of brokers surveyed noted increased leniency from landlords in the wake of the shutdown; for example, some pending and executed transactions have been restructured as percentage rent leases instead of pure fixed rent deals.
- With the Federal Reserve maintaining interest rates near 0% through 2023, landlords appear well-positioned to continue aiding their struggling retail tenants, which will be necessary considering some 98,000 U.S. businesses have closed permanently since March 1 of this year.