High Street or online shopping? What does it mean for Landlords?

How you do you answer that question? Some would say it’s simple...

...just look at the way you’re consuming media right now. You’re probably reading this post on your phone, after finding this link through a social media site such as Facebook or LinkedIn.

If that is the case, and social media is the next best thing since sliced bread – why are companies such as Tesco Direct having to pull the plug on their online platform and other brands such as GAP are putting down roots, committing themselves to a 10 year lease of a HUGE 10,000 sq ft store in Manchester Arndale.

With so many fingers pointing at the collapse of High Street favourites being down to the big scary online retail world, can anyone really say for sure what is to come next for retailers, be it on the high street and online?

And in the next breath: what does that mean for Landlords? Should they be more willing to accept shorter leases with more options to break? Are there other, more innovative ways to address this issue?

With the future market so unpredictable, I think Landlords will have to be more flexible when negotiating Lease terms, and be open to the idea of Tenants sharing their space. This is something we are already starting to see with companies such as Lipsy and Next sharing retail space, or with retailers bringing in services from the ‘experience economy’ under one roof such as a Costa coffee within Primark.

The option to sublet or share part of the premises without the lengthy and costly legal process of obtaining the Landlord’s consent, may therefore become a fundamental bargaining tool for nervous potential Tenants. 

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Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.

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