The Real Deal Miami

Chain stores read fine print to reduce rents

July 09, 2009 12:54PM

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 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. 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.