While there have been some indications of a potential revival in retail real estate, there is still uncertainty about when and to what extent consumer behavior will return to the previous normal. Industry experts expect a surplus of retail store closures and bankruptcies in the months ahead. In a recent S&P Global article, Ross Prindle, Managing Director and Global Head of the Real Estate Advisory Group at Duff & Phelps, said his retail operator clients are consumed with tenant negotiations at present, working with retailers on rent relief, rent deferment and lease restructuring.
"Market rents are declining. Leasing is pretty much nonexistent," Ross added, Anywhere between 10% and 15% of tenants may not even return despite rent relief. I think that's even going to be higher in the restaurant space."
