Many retailers are demanding better terms from landlords as the COVID-19 pandemic slows sales, such as paying a percentage of their sales as rent rather than a fixed monthly or quarterly fee. To offset some of the new risks, landlords are seeking to include a portion of a retailer’s digital sales in the pot of revenue that is used to calculate the rent, due to the bilateral influences of physical store locations and e-commerce on each other. These potential new lease terms may require retailers to open their books to landlords in a way they aren’t used to, and to explain how the online and store-based sides of their business interact. Read the rest of the story on WSJ.
Scribcor is at the forefront of these potential new retail rent arrangements and can assist with keeping your lease administration database current to reflect changes in your leased portfolio. Contact Scribcor today to learn how our database management service ensures your team always has access to current information and accurate reporting to support your rent payment process.