We’ve suggested that anyone who rents a place go to their immediately and demand a rent cut. In New York, anyway, from what we’ve heard, major multi-building landlords are losing tenants by the day and in some cases are offering pre-emptive cuts.
Well, now shaking down your landlord is becoming corporate policy at some places.
According to Bloomberg, coffee chain Starbucks (SBUX) is demanding landlords give them 20-25% monthly reductions on their lease. According to one broker cited in the report, landlords are frequently complying. (After all, Starbucks probably has room to shut a lot more locations if need be).
All in all, another sign of the commercial real estate cash flow. Even when vacancy isn’t the issue, nationwide retailer chains will be able to drive hard bargains.