15 June 2020 waypointam

Waypoint’s Thoughts on Turnover Rents

The structural change already impacting the retail sector has been exacerbated by the COVID-19 pandemic, accelerating the consumer shift to online buying and impacting heavily on the turnover and profitability of most forms of retail. Grocery and local convenience retail have been the exceptions.

Given future trading uncertainty, a range of tenants are known to have contacted landlords with a view to negotiating alternative and, what the tenant might consider to be, more equitable lease terms. The legacy of COVID-19 will almost certainly be a permanent change to the structuring of new retail lease agreements.

In this short briefing note, we consider the Turnover Leasing Model and highlight some of the issues that both landlords and tenants need to fully consider.

To read the full report click here