U.S. retailers could announce between 20,000 and 25,000 closures in 2020, with 55% to 60% of those situated in America’s malls. That would mark a record — which was previously 9,300 locations in 2019. So far this year, there have been a total of 4,005 announced closures, according to Coresight Research.
- There will be lawyers: The Laboz family and JEMB Realty have each individually filed lawsuits against H&M for their failure to pay rent. Albert Laboz told The Real Deal: “I’ve never been in a situation where these so-called credit tenants didn’t pay rent.”
- Unchartered territory: Neiman Marcus, Stage Stores, J.C. Penney, J.Crew, and others have already filed for bankruptcy protection. Although a declaration of bankruptcy would typically mean that retailers would have to continue paying rent, a court ruling, which approved Modell’s Sporting Goods’ request to pause its bankruptcy, has set a precedent to allow retailers to forego even that obligation.
- On the residential side… Roughly 80 percent of residential tenants paid at least some rent during the first week of June. That’s a slight increase from rent collections during the same period last month, according to the National Multifamily Housing Council, which tracks 11.5 million market-rate rental apartments.