In today's economic slowdown marked by slumping sales, many retail tenants are increasingly asking for rent concessions, and, in an effort to retain tenants, landlords are acquiescing to such requests.
Don't Give Rent Relief Without Any Strings Attached
There are several different types of rent relief, ranging from an all inclusive "gross" rent, to a temporary reduction in base rent, or converting the economic terms of the lease from fixed rent payments to a "percent in lieu" deal, where the tenant's rental obligation is based on a percentage of gross sales generated at the premises. This article describes the options.
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