A Covid-era rental break for retailers is more likely to grow to be the trade commonplace, WSJ experiences

Sign for rent on window, Queens, New York.

Lindsey Nicholson | Education Pictures | Universal picture group | Getty Images

Once temporary rental breaks for retailers are expected to become the new standard among landlords even after pandemic restrictions end and businesses recover, the Wall Street Journal reported Tuesday.

U.S. shopping center vacancies hit a record high in April as retail stores struggled to stay open after the Covid shutdown.

Retailers are looking for new ways to survive, leading many landlords to offer percentage leases – that tie monthly rental payments to a percentage of the renter’s monthly sales – instead of traditional, fixed payments, the Journal reported.

These flexible leases allowed retailers to manage their costs and were particularly helpful for new retailers, the Journal reported. Brands are now increasingly demanding percentage leases, according to the report.

Read more about percentage leases in the Wall Street Journal.