Retailers face ongoing challenges caused by the pandemic and resulting social distancing restrictions. Sales activity has lagged, hitting a ten year low of under half a billion in total sales of shopping center properties.
In Q2 new leasing came to a near halt, accompanied by few small to mid-size renewals across several sectors, particularly banking. Increased concessions, commencement and termination date flexibility, deferrals and lease reconstructions have become commonplace.
Rent collections have improved throughout Q2, from 72% in April to 79.4% in June for freestanding retail and from 45.9% to 60.5% for shopping centers.