What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

Recently there was an article in the Houston Business Journal of the anchor store in many shopping centers through out Houston pulling out. Kmart, took out some stores, so did three other big box stores and a few consumer electronics places and larger furniture stores, now Albertson's has left. Who gets hurt? The franchise stores who pay a high price and lease to be in those centers along side a big anchor tenant. Think about it, Albertson's with their large super stores with Banks in side, Starbucks coffee, bakery, mini eating area, film developing and pharmacy. Soon in Western States where property and land permit, on site carwashes too and also some already have fuel for your car, when you are a club card member. What if you had an MBE, Quiznos, Subway, Dry Cleaning, Travel Agency (as if things are not bad enough already), GNC, Hobby Town, Cost Cutters, etc.

If your anchor tenant moves out and traffic dies in the shopping center you are screwed. Right now it is tough on some small businesses that are not serviced based and mobile, but imagine the problems when the mall dies for no reason, due to an accounting glitch or cost cuts by some larger corporation which is your anchor tenant. And do not expect anyone to care, because Albertson's is based in Boise ID and CA. Kmart is Midwest, and this is not like the Kreisge's 5 and Dime in the old days, today it all about quarterly profits, shareholders equity, next months P and L and man they do not give one darn about the burned area left behind. Other large retailers are based in the middle of no where, like Wal-Mart in Bentonville AR, and they often move to better locations right out side of town in a growing area and close the other stores. Are you sure you want to sign a ten-year lease for space? Not me. That might be the longest and hardest ten years of your life.

You might want to think about the risks before you sign away ten years worth of lease payments to a shopping center management company. You might want to consider a reduction if the anchor tenant suddenly pulls out or an escape clause at your choosing. Think about it, others didn't and they are still paying.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:


pen paper and inkwell


cat break through


Smart Car Leasing for Beginners

Car leasing is extremely popular because it provides an attractive... Read More

Warning - This Lease Might Explode Any Minute

Mike Caringi, owner of a small New Jersey business that... Read More

Ten Equipment Leasing Tips - Save a Bundle on Your Next Lease

According to the Equipment Leasing Association ("ELA"), U.S. businesses lease... Read More

Lease or Buy? That is Always the Question with Car Financing

Leasing is a perfectly viable and legitimate way to finance... Read More

So You Want to be a Landlord?

The residual income from owning rental properties may bring more... Read More

Basic Things You Should Know About A Lease Purchase Contract

What exactly is a contract?By definition, a contract is an... Read More

Venture Leasing - A Smarter Way To Build Enterprise Value

In 2003, venture capitalists and investors dispensed over $18 billion... Read More

How Venture Leasing Added Millions To A Startups Equity Value

Craig Berman beamed noticeably after completing his board presentation. Berman,... Read More

Lease Contracts - The Meaning of Joint and Several

When you see the phrase "joint and several" in a... Read More

Ten Ways to Save a Bundle on Your Next Lease

According to the Equipment Leasing Association ("ELA"), U.S. businesses lease... Read More

Increase Your Business Growth and Cash Flow Through Equipment Leasing

"If it can be manufactured, it can be leased." For... Read More

The Leverage of the Lease

In today's rapidly changing business environment it makes sense to... Read More

With a Lease, The Devil Is In The Details

In the last article we looked at a few of... Read More

The Lease And Purchase Option

If you have an investment property, should you rent it... Read More

Explore An Effective Revolutionary Approach To Traditional Business Financing

For business owners who need working capital now there is... Read More

What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

Recently there was an article in the Houston Business Journal... Read More

Using Equipment Leasing as a Competitive Weapon

Most great generals know how to design winning battle plans.... Read More

How To Choose An Equipment Leasing Company

Leasing has become a preferred form of equipment financing, accounting... Read More

Leases And Tenants - The Spooky Tenant

You, Mr. Landlord are pleased to find qualified tenants for... Read More

Dodging Leasings Grim Reaper: Navigating a Payment Default

In her third Harry Potter novel, ?The Prisoner of Azkaban?,... Read More

Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions

The rise of venture leasing and lending has created an... Read More

Venture Leasing: Startup Financing On the Rise

According to Pricewaterhouse Coopers, investment by institutional venture capitalists in... Read More

What to Consider Before Leasing a Car

Some people choose to lease a car rather than buying... Read More

Pricing Your Apartments

How do you fix a price point for an apartment?... Read More

Equipment Leasing Blunders That Can Cost Your Firm a Mint

Rod McHenry, the financial vice president of a document imaging... Read More

Terms to Know Before Leasing A Vehicle - Leasing Jargon Simplified

So, you've decided that you want to lease that next... Read More

Insiders Guide to Snaring the Best Lease Deal

Every year, thousands of business owners and financial managers are... Read More

True Tenant Tales, Volume One

Working with tenants can be an amazing experience. (Owners and... Read More

Getting Your Venture Lease Approved

Each year venture capitalists fund more than 2,500 start-up companies... Read More

Landlord Tips And Tricks

Every real estate investor dealing in rental homes has done... Read More

Interim Rent: Equipment Leasing?s Trap Door

Many lessees enter into lease transactions that they believe are... Read More