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Loading ...With many malls losing customers and major players, now is the time to pursue rent reductions from your landlord. The legal jargon “cotenancy clauses”, are common in retail leases, they let tenants demand cuts in rent — or even a penalty-free pullout if key tenants or a specified numbers of stores leave the center.
It won’t save your store if you are about to close, but it could provide leverage to reduce rent or, if things get bad enough with closed Mervyns, Macy’s and other anchors dark, a chance to escape to a better center. The Wall Street Journal had a great story about major players like Williams Sonoma and GAP who are already pouring over their documents. Why shouldn’t you?
Have a lawyer take a look, this could save you thousands.
