Landlords in Hong Kong’s priciest retail strips are facing a wake-up call: the days of leasing stores for $1 million a month are over.

The high-end shopping corridor, home to luxury brands and swanky boutiques, saw a 17 percent decline in rent in the third quarter.

The bankrupt owner of the Ann Taylor and Lane Bryant asked for a deferral in July, but a group of landlords argue it isn't reasonable because most of the company’s stores are operating despite the pandemic.

After months of pandemic-inflicted shutdown, a legal battle over who’s responsible for rent was inevitable. The outcome for any of these cases will set a precedence for the whole industry.

Landlords face an existential threat as retailers collapse into bankruptcy with little sign of new operators looking to take their place.

The move comes after trade bodies wrote a letter to Chancellor Rishi Sunak seeking rental support.

As the coronavirus pandemic continues, tenants and landlords are on a collision course over rent. But retailers may have the market advantage, real estate experts say.

The German sports brand was blasted on social media last week for its decision to defer rental payments.