Please join us at our next Fashion Law webinar on Tuesday 1 December when we will discuss “turnover rent clauses in retail leases – the latest trend or here to stay?”
Turnover rent clauses must be carefully negotiated, particularly when taking into account the rise in online selling, ‘click and collect’ models and increasing the use of physical stores as showrooms to drive online sales.
Despite the challenges inherent in turnover-based rents, the model provides a flexible basis for landlords and retailers to share in the risks and rewards of the tenant’s trading performance. But with multi-channel retailing the lines between online and bricks-and-mortar retail are becomingly increasingly blurred. Much will therefore depend on clear lease drafting and careful consideration of what items to include in the calculation of turnover rent.
Scott Hilton, an associate in our real estate group, will explore:
- The changing retail landscape and potential emergence of turnover-based rents in the post-Covid-19 world
- An overview of the turnover-based rents model and key considerations for fashion retailers, and
- The future of rents in the fashion sector and conclusions.
There will be an opportunity to raise questions in the open Q&A session.