Death of the High Street Weighs on Landlords Round the World
According to Financial Times,
“The UK is ground zero. That’s where you have the greatest [level] of online sales as a proportion of total sales, and between that and the reality that occupation costs for retailers were particularly high in the UK, you’ve got the perfect recipe for significant retail disruption,” said Cedrik Lachance, director of real estate investment trust (Reit) research at Green Street Advisors in Newport Beach.
Closures in the US are “giving the upper hand to retailers in lease negotiation, resulting in an inability to push [up] rents at the top end of the market and a price-taker mentality at the low end, where rents are currently in free fall”, said Mr. Lachance.
Elsewhere, market sentiment is less extreme, but still negative: US mall REITs are trading at an average discount of 20 per cent and continental European retail landlords at a 16 per cent discount, according to Green Street Advisors.
To read the full article, click here.