Quote Originally Posted by percy View Post
Mall owners are now facing a few challenges.
The Farmers are now putting pressure on mall owners.
The Farmers own store is a "major" and as such pays a modest rental,as do the likes of Pak'n Save/Countdown, and The Warehouse.
So Farmers now own Stevens,Bed bath and beyond,Pascoes, Whitcoulls,and another Jeweller [whose name I forget].
I believe they have already managed to have Whitcoulls rent substantially reduced in one ChCh mall,which is owned by Kiwi Property.
I would expect they will be doing the same for all their chains' stores.
I do not see Michael Hill, for example, being happy paying a higher rental than Pascoes.
Tenants have always fought for lower rents. Major tenants like Farmers do know that if valuation rentals are not paid then new development stops. So rent reviews are often contested, but while there may be a bit of a variation between two valuers, it usually won't be much of a problem because rent levels are general ratcheted. New development is forever forging new rent levels.