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.