The Strategist

Apple asks UK retail landlords to cut rent in half

08/04/2020 - 04:42

Apple has asked property owners renting out space for stores in the UK to cut their rent by 50%, The Sunday Times reported. Profitability of the company's stores makes landlords “desperate” to continue cooperation.

Marc Cluet via flickr
Marc Cluet via flickr
Apple has told some landlords in the UK that it wants a 50% reduction in rental prices, The Sunday Times reports without specifying a source. In exchange, the company offers property owners a lease extension for several years.

It is about some of those landlords who provide Apple with 38 premises for stores in the UK, The Sunday Times notes. The company, according to the newspaper, seeks to pay rent at the same level as other retailers. Many of them, after the beginning of the crisis, convinced their landlords to lower prices, as the latter are having difficulty in keeping shopping centers full, the newspaper emphasizes.

Apple stores are among the most profitable, and their popularity means that property owners are "desperate" to keep the company as a tenant, the Sunday Times said. The "tough tactics" chosen by the company shocked property owners. 

At the same time, the conditions put forward by the company are related to stores, in which case the lease agreements will be valid for several more years, which means that the landlords are not yet obliged to make a decision, the newspaper emphasizes. Apple declined to comment.