The Real Deal Miami

Starbucks looks for rent reductions

May 29, 2009 12:45PM

Starbucks
is pushing some of its landlords around the country for as much as a 25
percent reduction in rent. Faith Hope Consolo, chairman of retail
leasing, marketing and sales at Prudential Douglas Elliman, said she is
advising about a dozen landlords to work with the coffee giant after receiving
letters seeking rent reductions of 20 to 25 percent.”In this
environment, what we’ve seen in general is the landlords and the
retailers really have to work together more closely to prevail,”
Consolo said. Starbucks began rent reduction efforts in January as part
of a plan to cut overall expenses, according to a spokesperson for the
company. The same month, Starbucks said it would close about 300
locations
this year after first-quarter profits plunged 69 percent.