After years in the driving seat, the tide has turned on landlords and retailers have the whip hand. However, occupiers must remember that they need landlords too.
There is a groundswell of acceptance, both from owners and occupiers, that the existing leasing model as it has been for years now is pretty much broken, and that one of the solutions to that may be a move across the board to turnover-based rents. In principle, I don’t think that landlords can throw their arms in the air in horror at the thought of a major tenant making the switch to turnover-based rents. That certainly is a debate, or at least discussion, which needs to be had more widely.
At the same time, any move to turnover-based rents needs to be built on the profitability and the performance of the store, not what tenants think that they can get away with paying at the time.
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