Retailers Restructured and Disposed Assets During the Last Downturn. Here’s How This Time Is Different.
Excess Space’s Michael Wiener says ‘We must talk about science these days instead of just talking about real estate, because it’s all tied together now.’
September 23, 2020 | Liz Wolf | National Real Estate Investor
The pandemic is forcing grappling retailers across the U.S. to make tough decisions. Some are trimming store fleets or shutting down operations altogether. According to a recent report from retail data firm Coresight Research, 20,000 to 25,000 U.S. stores could permanently close this year.
Meanwhile, some flailing retailers are telling their landlords that they’re unable to pay rent for months following pandemic-related closures and thousands of new cases of COVID-19, which have left many struggling with dramatically reduced foot traffic.
COVID-19 has led to significant negotiations between landlords and their retail tenants. Many chains are turning for help on how to navigate their distressed real estate obligations.
