This isn't good news for retail property owners. Tenants at Los Angeles' Grand Central Market withheld February rent from the property's landlord in a united bid to get rental reductions and lowered fees. The situation has now been resolved. The landlord relented and agreed to the terms and the tenants did pay up.
As part of the resolution with landlord The Yellin Company, rents will be lowered and advertising fees charged to the tenants will be eliminated.
The fracas, which resulted in many rents being paid two weeks or more late, is yet another sign of the financial hardships stemming from the national recession. Although most visitors to the Downtown Los Angeles landmark were unaware of the situation, several tenants said their future survival is in question.
Adele Yellin, president of the Yellin Company, said that the move will lower costs for the 40 merchants.
"We do understand the pressure that our tenants are under in these times and we've taken steps to reduce their rent by eliminating the advertising budget," Yellin said.
(Spotted at Mish's Global Economic Trend Analysis)