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One of the nation’s largest retail landlords is working with its tenants on a “case-by-case” basis in response to the Covid-19 health pandemic.
Benderson Development Co., which owns and operates hundreds of retail properties nationwide, is seeking “the best solution” for occupants beset by diminished sales and government “stay-at-home” orders that have curtailed merchant sales.
“We are working directly with each tenant on a case-by-case basis to find the best solution we can given these unprecedented circumstances,” says Benderson Development spokeswoman Julie Fanning, in an email.
“We have many different types of businesses within our shopping centers and not everyone is impacted the same,” Fanning adds. “We are especially focused on doing what we can to help our local and family-owned tenants, including providing information about the resources that can help mitigate some of the financial impacts of COVID-19.”
While University Park-based Benderson is hardly alone in working with tenants, its sheer size makes it a bellwether for other shopping center landlords. In all, it owns more than 750 properties in 38 states, though some of its holdings are in the office and industrial sector.
The company formed by the late Nathan Benderson also owns hotel operator Buffalo Lodging. Hospitality companies also have been particularly hard hit by the pandemic.
The nation’s largest mall operator, Simon Property Group, shuttered some 200 malls nationwide last month in response to the global health crisis. Conversely, Michigan-based Taubman Centers Inc. – owner of the International Plaza mall in Tampa and, with Benderson, the Mall at University Town Center, outside Sarasota -- said in March that tenants would be responsible for April rent payments despite the health crisis.
Numerous retail tenants, most notably The Cheesecake Factory and Mattress Firm, have indicated that they won’t be able to meet rent obligations and have asked for forbearance or to renegotiate leases. Some tenants have even sought to apply “force majeure” – “act of God” -- clauses in their leases amid the pandemic to abate rent payments.
Fanning did not indicate specific tacts Benderson is taking with tenants. But she did praise those merchants in Benderson Development centers that have stayed open to meet consumer demands.
“We are grateful for the businesses in our portfolio – the grocers, pharmacies, pet supply stores, banks and restaurants -- that have quickly adapted operations and remain open to keep our communities supplied with essentials,” she wrote.
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