Mall tenants migrate to the street in search of lower costs

The adjustment based on the IGP-M is being fully passed on, in accordance with the expiration date of each contract.

During the initial stages of the pandemic, property management companies held back on rent adjustments. However, now the full IGP-M (General Price Index - Market) update is being passed on to tenants, in accordance with the expiration date of each lease agreement

By: SiiLA News

01/18/2022

A trader at Shopping Center Norte, in the north of the city of São Paulo, was shocked when he got the R$ 115,000 rental, condominium and promotion fund bill this month from his 50 sq metres store. In comparison, a 100 sq metres high street rent in the area would cost R$ 12 thousand. This comparison between the shopping and high street cost surprised many people, and part of them has migrated to open spaces.

Satellites are smaller stores which are often the gimmicks of developments. The approximately 100 networks associated with Ablos added up to almost 6,000 points before the pandemic. Now there are 3,500.

Read the full story (in Portuguese).

Source: Valor Econômico

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