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Which tenants asked for rent abatement most?

July 1, 2020

Salons are the shopping center tenants most likely to ask for a rent abatement, while child-related retailers are the ones least likely to need one, according to a survey.

Retail data and software vendor RetailSphere surveyed 3,300 of its shopping center clients, who have 60,0000 tenants, to find out which tenant classes are requesting abatement now that many government-mandated closures have been lifted.

On average 30.6 percent of all salons requested rent abatement. Fitness-related retailers were the next biggest group of tenants asking for rent abatement, with an average of 16.3 percent requesting rent abatements. National brands/franchisees ranked third, with an average of 12.2 percent requesting rent abatements.

These categories needed rent abatements as a result of frequent forced closures, and in many cases, state mandated delays in re-opening. These delays have been especially problematic for gyms.

The industries with the fewest rent abatement requests were child-focused businesses, with just an average of 4 percent requesting rent abatement, followed by medical-related (6 percent) and food-related (8 percent) shopping center tenants requesting abatements. 

By Brannon Boswell

Executive Editor, Commerce + Communities Today

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