Even chain stores are pushing for cheaper rents
But will they be able to wrestle with, as Winston Churchill once put it, ‘the mother of all monopolies, the landlord’? This will be a fascinating battle between David (chain stores…sorry I still can’t bring myself to type the co name) and Goliath (the landlord).
May 29 (Bloomberg) — Starbucks Corp., the world’s largest coffee-shop operator, is pushing some U.S. landlords for as much as a 25 percent reduction in lease rates, taking advantage of a declining real estate market to save on rent.
Faith Hope Consolo, chairman of New York-based Prudential Douglas Elliman’s retail leasing, marketing and sales division, is generally advising about a dozen landlords to work with Starbucks after they received letters seeking rent reductions of 20 percent to 25 percent. She hasn’t seen the correspondence.
Separately, two other letters were confirmed by two property managers, who declined to be named because the negotiations are still under way.
“In this environment, what we’ve seen in general is the landlords and the retailers really have to work together more closely to prevail,” Consolo, 50, said in a May 27 telephone interview. “We’re talking a lot about tenant retention.”
Read more at Bloomberg