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Lockdown 4.0: Stand-off between retailers and malls over rentals worsens

At the heart of the matter are revenue-share rental agreements that retailers are mooting over fixed-rent contracts that they say are unsustainable

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Retailers say they now want to pay rent on the basis of the revenue they earn in the next few months once the lockdown is lifted, rather than making fixed payments.

Raghavendra Kamath Viveat Susan Pinto Mumbai

4 min read Last Updated : May 27 2020 | 2:41 AM IST

A new flashpoint has erupted in the ongoing tussle between retailers and mall owners over rentals, this time over modifying rent pacts as the lockdown eases in many states.

At the heart of the matter are revenue-share rental agreements that retailers are mooting over fixed-rent contracts that they say are unsustainable, given the revenue loss they’ve suffered during the lockdown.

The concept of revenue-share as far as rent goes, said experts, is fairly new to the Indian retail landscape which has traditionally depended on landlords taking outright rent from retail clients in addition to charging them for common area maintenance.

Retailers say they

Topics : Coronavirus Lockdown malls in India retail malls retailers Offline retailers Brand Retailers DLF Indian Economy Future Retail Oberoi Realty V-Mart Retail

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