This week sees more requests for rent concessions from retailers and the leisure sector including Travelodge.
Superdrug have said they will pay only 25% of rent for the next 3 months minimum, even though many of their stores are open. McDonalds have also asked for rent concessions this week.
Travelodge have offered something new. To extend the term of their leases in return for rent frees now. In effect they will offer an extension of the term equal to the rent foregone now by landlords.
In April, the British Retail Consortium and the British Property Federation both wrote to Chancellor Rishi Sunak seeking more support for shops and landlords. They want the government to support a “furloughed space grant scheme” where businesses would pay some rent, landlords would agree to a reduction and the state would make-up the shortfall.
Both the Travelodge proposal and the BPF /BRC proposals at least suggest a mutual sharing of the pain of rent frees now, which must be right.