Chain stores read fine print to reduce rents.
As retailers continue to struggle amid the recession, chain stores
are turning back to their leases' fine print to find reason to ask
for rent reductions. Many retail leases include cotenancy cotenancy n. the situation when more than one person has an interest in real property at the same time, which may include tenancy in common, joint tenancy or tenancy by the entirety. (See: cotenant, tenancy in common, joint tenancy, tenancy by the entirety, community property) clauses, which
allow tenants to ask for rent cuts or even to pull out without penalty
if other key tenants leave a particular shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into . Gap,
Williams-Sonoma, and Ann Taylor are some of the stores looking to take
advantage of these clauses, the Wall Street Journal reports.
Chico's has already saved $8.1 million by using cotenancy clauses
and negotiating for other forms of rent relief.
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