What: The real estate company reports that the leasing activity is soaring again.

Why it is important: More flexible lease terms might become the norm, and this might impact in turn the types of conditions that department stores can negotiates with brands leasing locations in their premises.

Simon Property Group reported a strong momentum in leasing and sales during Q1 2022, with an occupancy rate of 93.3%, compated to 90.8% a year ago. This represents more than 900 leases and more being discussed with new potential partners. As a consequence, SPG gross annual rent revenue rose to 5.4% this year from 4.2% a year ago and 1.9% in Q4 2021.

More flexible lease terms are offered to tenants, with “overage rent” based on sales, on top or instead of a fixed base rent.

Simon Property Group reports a rise in short-term leases in the US