Legal & General launches new flexible leasing model for retail and leisure
Legal & General (LGIM Real Assets) has launched a new commercial leasing framework for retail and leisure occupiers (flexible partnerships model), with an initial focus on turnover rent options.
The flexible partnerships model marks a departure from traditional long-term leases, to a fully flexible approach that brings options to occupiers from startups all the way to superstores.
With structural changes impacting the retail and leisure sectors in recent years, predominantly due to the rise of e-commerce and rapidly changing consumer expectations, the traditional leasing model and the “1954 Act” is no longer a fit for the purposes of many occupiers. Over the past five years, retail business launches and failures have increased by 29 percent, and in 2019, the average length of a new retail lease had fallen to less than five years. Historically, landlords have taken a one-size-fits-all approach, which in today’s fast paced and evolving leisure and retail sector