Starbucks Seeking Rent Reductions
May 29, 2009
Starbucks is reportedly sending out letters to some of its landlords seeking a 20-25% reduction in rent. At the height of the market, Starbucks-anchored buildings were some of the hottest investments for small investors.
Investors were acquiring Starbucks anchored strip centers and freestanding Starbucks’, at less than 5% cap rates in some instances, anticipating Starbucks’ rent stream would be stable, its tenancy assured, and rents would continue to rise. What’s more is that Starbucks’ rent was often some of the highest, making it all the more difficult for landlords now to justify telling Starbucks to get lost in the face of staring at an empty storefront whose market rent might be effectively about half of what Starbucks is paying.
More from Bloomberg.
Similar Posts:
- San Francisco’s Bong Su Latest Victim; Restaurants Hit Hard
- August 2009 RREEF Property Cycle Monitor
- Starbucks Closing 600 Stores in the United States
- An Interesting Strategy To Reduce Rent
- Banks Bracing For CRE Defaults
No comments yet.