Turnover Rents Are Great (But Not For You), Aviva Tells Shopping Centre Landlords

Aviva Investors is a great fan of turnover retail leases. But its enthusiasm doesn’t extend to encouraging all of its retail landlord-partners to use them.
Aviva, which has invested in three of McArthurGlen’s UK outlet villages and owns roughly 55% of the new West Midlands outlet, said the base-rent-plus-turnover model was perfect for outlet retail. But the peculiar dynamics of outlet retail do not apply in shopping centres, and so lease structures there would remain different.
Top-up turnover rents have long been the foundation of outlet malls and regarded as one of the keys to success in a fast-moving sector. But in more traditional…

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