Real estate analytics firm CoStar Group estimates retail rents in the US will fall by 8-13 per cent post the coronavirus crisis. These rents have risen by 2.6 per cent over the last three years. As retail business came to a standstill in the months of March and April while some even continue into May, national retail chains in Europe and US are crumbling.

With most of them negotiating rent agreements with landlords or not being able to pay rents altogether, mall operators’ rent collections have hit rock bottom, casting doubt over the ability to sustain business. In April, the total rent collection for mall operators in US was only 15 per cent rent collection and the trend is forecast to fall further for May.

As many retailers like Macy’s and Tapestry struggle to reach common consensus with mall owners, the inability to meet the rent agreements has led to store closures all over the country. Retailers are of the view that rents have been riding too high in the recent past and in order to keep more stores from either leaving premises or closing down, mall owners will have to rethink their rent strategies.