Uncharted Territory For Retail Tenants And Landlords: Factoring Online Returns Into Gross Sales Calculations

Gray Reed
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With the rise of e-commerce, declining foot traffic in malls and shuttering department stores,retail landlords and brick and-mortar tenants have faced a wave of challenges in recent years. As a result, both landlords and tenants are constantly searching for new and unique ways to improve their bottom line. One recent area where this has become an issue concerns in-person returns from online sales, and how they affect a retail tenant’s percentage rent calculation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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