Friday, May 29, 2009

Rite Aid and CRE

by Calculated Risk on 5/29/2009 08:11:00 PM

Earlier today Bloomberg reported: Starbucks Pushing Landlords for 25% Cut in Cafe Rents

Starbucks Corp. ... is pushing some U.S. landlords for as much as a 25 percent reduction in lease rates, taking advantage of a declining real estate market to save on rent.
Now I've heard through a reliable source (unconfirmed) that Rite Aid is also asking for rent reductions. Rite Aid apparently held a conference call with 60 Rite Aid landlords and asked for a 25% rent reduction - or they would close the stores.

Also, from the Baltimore Business Journal: Rite Aid nixes Baltimore convention
Rite Aid Corp. has canceled its annual convention in Baltimore ... one of Baltimore’s biggest conventions in recent years, bringing 6,000 people to town and pumping $6 million from direct spending into the city in 2008 ... The company had originally booked 14,500 hotel room nights for its nine-day expo in mid-August ...
Just more problems for commercial real estate (CRE).