by David Bodamer February 6th, 2009
U.S. mall owners General Growth Properties Inc., Kite Realty Group Trust and Macerich Co., faced with rising vacancy rates in the recession, are being forced to accept lower rents from their remaining tenants.
Real estate investment trusts that own retail properties are getting snagged by co-tenancy clauses that allow merchants to pay less when anchors like department stores shut down, according to Real Point LLC data based on loan-servicer reports.
“A year ago, tenants in major shopping centers were rarely invoking co-tenancy clauses,” said Charles Daroff, a partner at Hurtuk & Daroff Co., a Cleveland-based law firm that specializes in real estate. “Today, with the disappearance of major tenants and increasing vacancies, these clauses are being triggered.”
Link.
Related Topics: Management & Leasing, News, REITs, Retail Real Estate |
by David Bodamer February 6th, 2009
Two more retailers have opted for Chapter 11. The New York Post reports on Fortunoff’s decision while our sister publication Supermarket News provides the update on regional grocer Bruno’s. Fortunoff seems like a possible liquidation candidate. Bruno’s, however, does not appear to have immediate plans to close stores.
The announcements so far:
Bankruptcies and Liquidations:
- Jan. 7, Goody’s liquidates, closing 287 stores
- Jan. 8, Against All Odds files for bankruptcy protection, operates 64 stores overall, plans to close West Coast stores
- Jan. 13, Shane Co. files for bankruptcy, operates 23 stores
- Jan. 14, Gottschalks files for bankruptcy, operates 58 stores
- Jan. 16, Circuit City to Liquidate, closing 567 stores
- Feb. 6, Fortunoff, operates 20 stores
- Feb. 6, Bruno’s, operates 66 stores
Potential Bankruptcies & Liquidation Impact: 1,085 stores
Announced Closings
- Jan. 8, New York & Co., 50 stores
- Jan. 8, Macy’s, 11 stores
- Jan. 9, Supervalu, 50 stores
- Jan. 13, Cost Plus, 26 stores
- Jan. 20, Yankee Candle, 28 Illuminations stores
- Jan. 21, Filene’s Basement, 11 stores
- Jan. 22, Phillips-Van Heusen, 175 stores
- Jan 22, Brown Shoe, up to 35 Famous Footwear stores
- Jan. 26, Home Depot, 48 stores
- Jan. 29, Starbucks, 200 U.S. Stores (plus 100 international)
- Jan. 29, Chico’s, up to 25 stores
Total Closings: up to 659 U.S. stores
Potential Impact of All Announcements to Date: up to 1,744 U.S. stores
Related Topics: News, Retail |
