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1.Market Observations, 8.Was Sticky

13 Jan 2018 (AFR) – Retailers in epic fight – Landlords feel the power of online disruption

(13 January 2018, AFR, p40, by Tony Boyd)

‘Shopping centre landlords are starting to feel the disruptive power of online shopping as an increasing number of troubled retailers rebel against exorbitant rents. Bricks and mortar retailers hit by changing consumer shopping habits say they can no longer afford to meet lease commitments with built in rental escalators of 4 or 5 per cent a year. Some retailers say they need to cut their rental expenses by 20 to 40 per cent to remain viable. But the landlords come to this fight with powerful legal weapons.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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