Driving growth in this strategy in New York city is a game of money that landlords will ultimately make more money from a percentage of on-street rentals, even if they now offer lower base rents to attract tenants, Breslin said. It can also be used to attract retailers for hard-to-rent surfaces. While the parties` relative negotiating positions and market conditions influence those who benefit most from a sale or sublease, profit sharing effectively allows the lessor and lessee to spread the risks and opportunities of market fluctuations. Longi declined to disclose the details of the lease, including the price per square foot, the percentage rent it pays, or the number of capital points in its lease.
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Posted Oct 4th, 2021
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