What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

Home
>
Leases & Leasing
>
What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

Recently there was an article in the Houston Business Journal of the anchor store in many shopping centers through out Houston pulling out. Kmart, took out some stores, so did three other big box stores and a few consumer electronics places and larger furniture stores, now Albertson's has left. Who gets hurt? The franchise stores who pay a high price and lease to be in those centers along side a big anchor tenant. Think about it, Albertson's with their large super stores with Banks in side, Starbucks coffee, bakery, mini eating area, film developing and pharmacy. Soon in Western States where property and land permit, on site carwashes too and also some already have fuel for your car, when you are a club card member. What if you had an MBE, Quiznos, Subway, Dry Cleaning, Travel Agency (as if things are not bad enough already), GNC, Hobby Town, Cost Cutters, etc.

If your anchor tenant moves out and traffic dies in the shopping center you are screwed. Right now it is tough on some small businesses that are not serviced based and mobile, but imagine the problems when the mall dies for no reason, due to an accounting glitch or cost cuts by some larger corporation which is your anchor tenant. And do not expect anyone to care, because Albertson's is based in Boise ID and CA. Kmart is Midwest, and this is not like the Kreisge's 5 and Dime in the old days, today it all about quarterly profits, shareholders equity, next months P and L and man they do not give one darn about the burned area left behind. Other large retailers are based in the middle of no where, like Wal-Mart in Bentonville AR, and they often move to better locations right out side of town in a growing area and close the other stores. Are you sure you want to sign a ten-year lease for space? Not me. That might be the longest and hardest ten years of your life.

You might want to think about the risks before you sign away ten years worth of lease payments to a shopping center management company. You might want to consider a reduction if the anchor tenant suddenly pulls out or an escape clause at your choosing. Think about it, others didn't and they are still paying.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:

GlobeSt.com
House Representatives Warn FASB About Lease Accounting
GlobeSt.com
WASHINGTON, DC-The ongoing--and now seriously delayed—efforts by the International Accounting Standards Board and its US equivalent, the Financial Accounting Standards Board, to converge lease accounting standards has caught the attention of two ...
Sherman and Campbell Lead Effort To Stop New Accounting Rules For LeasesVan Nuys News Press
Congressmen Urge FASB to Reconsider Lease Accounting ChangesAccounting Today

all 7 news articles »

Spinnaker Thriving in a Slow Economy With Major Lease Deals in Connecticut and ...
Virtual-Strategy Magazine
1.4 Million SF of Space Leased Since Real Estate Correction Including Major Deals with NBC Sports, Chelsea Piers, Gartner Inc. and WWE Despite a sluggish economy and a slowly improving commercial real estate leasing market, Spinnaker Real Estate ...

and more »

Ventas Announces New Lease with Kindred
MarketWatch (press release)
The new LTAC Lease covers all ten LTACs whose lease term is currently scheduled to expire on April 30, 2013. The new LTAC Lease has an initial term of ten years and contains annual CPI-based escalations ranging from zero to 4 percent.
Senior Housing Finance Activity: HFF, Ventas, Oak Grove Capital, & MoreSenior Housing News

all 10 news articles »

Swapalease.com Honors American Heroes with Deep Discounts for Memorial Day
MarketWatch (press release)
But how about a sale that could help you swap your current lease for another summertime symbol - such as a snazzy new-to-you convertible? Beginning this Friday, May 25, Swapalease.com will help American veterans do just that with their first Memorial ...
Drivers sticking close to Home Memorial Day WeekendTravel Daily News International

all 10 news articles »

Rogers asks BLM to delay lease auction of forest land
Anniston Star
Mike Rogers, R-Saks, Thursday asked the federal Bureau of Land Management to halt plans to lease 43000 acres of national forest land in Alabama for potential oil and natural gas drilling. Rogers said Thursday following a Calhoun County Commission ...

FDIC Signs Lease In Lakecrest
Memphis Daily News
By Sarah Baker Federal Deposit Insurance Corp. has inked a substantial lease in Lakecrest III, marking the market's largest office lease signing this year. FDIC has leased 32306 square feet in Lakecrest III, 6060 E. Primacy Parkway.

and more »

Anytime Fitness Signs Lease for a New Club at Chandler Plaza in Chandler, Arizona
Sacramento Bee
For leasing information, please call (310) 717-6932 or visit http://www.officespacechandleraz.com/. This press release was issued through eReleases® Press Release Distribution. For more information, visit http://www.ereleases.com.

and more »

The Hindu
SC stays quashing of lease of Jal Mahal to private firm
The Hindu
The Supreme Court on Friday stayed the Rajasthan High Court order cancelling the lease of 100-acre land having historical Jal Mahal and Man Sagar Lake in Jaipur to a private firm to develop as a tourist resort. A bench of justices Deepak Verma and SJ ...
SC stays quashing of lease of Jal Mahal to pvt firmIBNLive.com

all 15 news articles »

Ventas Announces New Lease With Kindred
TheStreet.com (press release)
By Business Wire 05/24/12 - 07:35 AM EDT Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that it and Kindred Healthcare, Inc. (NYSE: KND) (“Kindred”) have entered into a new lease (the “new LTAC Lease”) for ten long-term acute care ...

Don't lease this land
Times Daily
The National Park Serves could lease 43000 acres of Talladega National Forest to oil and gas companies for exploration. If oil or natural gas is found there, the controversial technique of hydraulic fracturing — or fracking — could be used to extract ...
Citizens say no to leasing forest landDaily Home Online
Activists, lawmakers jump into fracking debateThe Piedmont Journal

all 5 news articles »

Google News