How Online Sales Could Affect Valuations for Commercial Properties

by Benjamin Greenberg

"Most retailers are demanding better terms from landlords as the Covid-19 pandemic slows sales."

Something has to give. With the huge shift to online shopping during the pandemic, store tenants are suffering and as a result so are rents. Could some innovative new lease arrangements help create some stability for commercial property owners? With their revenues declining so dramatically and rapidly, many retailers are looking for even more concessions from their landlords. 

Could sharing a percentage of online and brick & mortar sales versus a fixed rent be the solution? And what about the bigger picture: will mall and shopfront valuations return to normal before this issue is resolved, or are we in for a longer recovery as retailers and landlords struggle to find new equitable arrangements?

Join Our Newsletter

Get notified of the latest market trends and events.