I almost never comment on REITs as that’s not something I’m familiar with
But in my work, I get to know intimately the various rental rates of mall spaces.
We have some clinics in malls and in recent times, some of these leases r up for renewal
All have been renewed at LOWER rates or the same rate, but with lots of concessions (free advertising, waiver of GTO sharing, longer lock in lease periods at fixed rates, free car parking coupons every month)
I think all tenants will nego for lower leases.
It’s v competitive now because if the rates r not lowered, there r many new malls dying for our business. I reckon all this will start showing up in the earnings of REITs this yr, but prob more obviously next year where there’s a full year of the lowered rates
Occupancy levels will still be good though. Tenants r usually loathe to move because of the sunk in costs in renovating
Note that I’m talking about mostly retail mall spaces, so not all reits
I’m just sharing my real life experience, so don’t start asking me about reits, I don’t have a clue.
Read what u will into all this.