The retailers, across the UK, who are seeking new leases, are now asking for ‘pandemic clauses’!
Asking for pandemic clauses means that the rent amount will be cut if the retailer’s stores are forced to shut down during lockdown.
With a surge in COVID-19 cases in the UK over the last month, severe restrictions imposed by the Government are taking their toll on the high-street retailers. Consequently, several retailers are now asking for the aforementioned clauses.
Reportedly, online giant Amazon, along with VF Corporation and Sports Direct, is considering the inclusion of the pandemic clause into new leases.
The clauses are structured as a result of which rent will be halved once the stores are forced to close in case of lockdown, which the retailers fear may happen anytime. The turnover leases would see the base rent slump by half.
What’s notable is that shopping centre owners like British Land and Hammerson have agreed leases on these terms.
There have also been reports lately that non-essential retail may go into lockdown in Scotland if top-tier restrictions are approved and implemented.
Watch this space for more details!