No rent break from Taubman for retailers
Taubman Centers, one of the largest owners of malls in the United States, is demanding rent from tenants even though their properties are shuttered during the coronavirus pandemic.
USA Today obtained a letter Taubman sent to tenants that said “All tenants will be expected to meet their Lease obligations. It further explained that the "landlord's obligation to pay its lenders, utility companies, insurance companies and the like, to ensure the safety and security of the building and maintain the appropriate level of operations, remains."
Taubman’s action falls within its rights, according to Ken Lamy, president of The Lamy Group, which handles tenant relations for mall owners.
“Many retail and restaurant tenants believe that rents are automatically forgiven for the periods in which shopping center owners closed the shopping center or when government entities require nonessential stores to close temporarily,” Lamy said. “However, most lease provisions generally do not relieve a tenant of rent obligations merely because the store was compelled to close.”
Taubman has received numerous inquiries about rent relief from tenants, according to USA Today.