Starbucks vs. Landlords

Read an interesting article about how one of the best known retail tenants in the country is finding itself in quite a tough spot.  Starbucks recently announced that they were going to be closing hundreds of existing and planned stores to reposition the company during this brutal economic time.  While this is something Starbucks, and many retail tenants across the country, had to do, a lot of landlords and developers are not very happy. 

"A handful of property owners and developers have filed lawsuits alleging that the Seattle coffee giant owes them money for rent or other expenses on properties where the company has shut down a store or decided not to open one after entering a lease. At least seven lawsuits have been filed against Starbucks since last year."  As a developer or landlord, this decision to close hundreds of stores is crushing.  Not only are they losing a great tenant, they are losing all of the tenants that automatically sign a lease wherever a Starbucks pops up.  Make sure you go get your orange mocha frappuccino from your favorite barista as soon as you can because who knows if "your" friendly Starbucks will be there tomorrow.  

Article: http://www.therealestatebloggers.com/2008/10/13/starbucks-and-landlords-battle-over-store-closings/