Who is playing ball (retail)
I am starting this thread to get a better idea of what retailers are agreeing to what. We have been pushing for mostly deferments and have had pretty mixed success.
[{"id": "fr34fqh", "text": "I've made different deals with different tenants. Vitamin shoppe asked for the most even though they were open the whole time. They got the least from me. Starbucks is now going to ask for concessions. I have not spoken to them yet. Every tenant I've dealt with has given me something in return. No straight abatements.", "replies": [{"id": "fr39sl0", "text": "What have you been getting in return? A lot of the guys we have dealt with won't do anything in regards to cotenancy or restrictions without an abatement which we are refusing. In some instances we have been able to get a tenant to exercise an option early but thats pretty much it.", "replies": [{"id": "fr3g0wj", "text": "Exercise early, add a year to lease term, recapture deferred rent spread over 2021, and defered months to the end of the lease. Really just depends on how hard they were hit.", "replies": [{"id": "fr44j9y", "text": "u/hold_my_drink Interesting. Vitamin Shoppe's corporate fight aggressively for the rent or the franchise owner fight it? Thanks.", "replies": [{"id": "fr5ajx5", "text": "Corporate.  Do they do franchise deals?  I actually don't have a problem with them asking for the moon.  Better for their long term viability if they get it.", "replies": [{"id": "fr5mpox", "text": "u/hold_my_drink They were acquired by a PE called \"Vintage Assets Management\". The parent company of Vitamin Shoppe right now is called \"The Franchise Group.\"", "replies": [{"id": "fr601y2", "text": "I didn't realize Liberty Tax had changed their name.  Anyway, I'm still not clear if franchising is a new thing for them or not.  I understood all their stores to be corporate when I signed a lease with them in 2014.  I negotiated directly with an attorney at the home office in New Jersey.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fr3in90", "text": "We have a large mix of local, regional and national-credit retail and service tenants. We\u2019re only doing deferments, but we work the specific terms on a case-by-case basis. We found there was no way to have a program, because every tenant is different and has different specifics and needs. Having a good Property Manager who knows the tenants helps a lot. We\u2019ve been much more generous with local small-business tenants, and we\u2019ve given a lot of them 6-12 months to pay back deferred rent (mostly April and May so far). We\u2019re holding the line with the national-credit tenants and demanding gross sales #s when we don\u2019t have them. Almost all of of them have buckled and paid April and May because they couldn\u2019t justify the ask. We have not agreed to \u201ctack the deferment on the end of the lease.\u201d  That has no value to us. However, we\u2019ve done a few early renewals where we rolled a month or two (usually April and May) into a lease renewal as abated/free rent.  We\u2019ve also negotiated a few early termination agreements with tenants who won\u2019t be able (economically) to reopen. I fear there will be more of those as time goes on. In general, we\u2019re being very creative with the small-biz tenants and rejecting national-credit requests, most of whom are being opportunistic.", "replies": [{"id": "fr44nr0", "text": "Well, it depends on what kind of tenants. If Starbucks (or similar ones) being opportunistic, I think landlord has to think about their request at least.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "fr4i6wh", "text": "I can tell you from experience that dealing with SBux on renewals, adjustments, etc is not a fun one lol.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fr3ersq", "text": "I\u2019ve seen some long term tenants receive deferments for a few months with the intent to repay over the next year. Others received abatements under the condition they extend their lease the same amount of months abated, but still paid controllable CAM items for their space during that same period.", "replies": [], "depth": 1}, {"id": "fr3p9st", "text": "Case-by-case.\n\nMom &amp; pops getting deferments and simple extension by the # of months deferred.\n\nDepending on relationship, credit tenants are either getting rejected flat out, or getting deferrals in exchange for making amendments to cotenancy or other restrictive covenants, or agreeing to longer term extensions (I've seen up to 5 years, more typically 1-2).", "replies": [], "depth": 1}, {"id": "fr3y7e0", "text": "I have a medium size portfolio of local and national retailers. For the most part, local mom and pops are deferrals (or abatements for restaurants or guys who probably won\u2019t really make up the sales later). The National guys are the deferrals or most haven\u2019t asked for much but there are a few national guys that have been total jerks - stiffing landlords even though they are open or have historically done well. Some have just not paid (without notice) or essentially forcing us to give discounts in exchange for paying anything (even back rent or CAMs). Here are the worst offenders:\n- Petco \n- LA Fitness\n- Starbucks\n- Wendy\u2019s\n- Landry\u2019s\n- LAZ Parking\n- Sketchers\n\nPetco was by far the worst. \n\nGood luck out there guys. Feels like the worst of it is over but the fallout of retail tenants is just beginning. I think next 6 months will be brutal especially on the restaurant side.", "replies": [{"id": "fr44wcv", "text": "Starbucks has leverage. Would you gonna let them go just  because some concessions?", "replies": [{"id": "fr5el4l", "text": "But that's the thing, they can't just go unless they have a lease kickout.  One thing I've learned through all of this is that all the tenant's are different and have to be treated differently.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fr4k00c", "text": "What are people doing with gyms and theatres?", "replies": [{"id": "fr5oe4v", "text": "I've been working with a large theatre group on a great property to sell off a portion of their massive parking lot to mixed use developers.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fr4tnat", "text": "No. That\u2019s my point they are using their leverage in a pandemic to force landlords to give concessions even though they can afford it - yet most banks aren\u2019t giving landlords mortgage relief (just short term deferrals).", "replies": [], "depth": 1}, {"id": "fr5041l", "text": "May-June deferrals, to be paid back 50% by around Jan 2021 and the other 50% by around June or July 2021.", "replies": [], "depth": 1}, {"id": "fr52rvt", "text": "We are seeing (&amp; getting) deferments with the deferred rent paid back over 6/12/24 months.", "replies": [], "depth": 1}]