In a recent article for Bisnow titled, “‘This Is Not Working’: Rising Rents Are Putting The Nail In The Coffin For Small Retailers,” First Vice Presidents Adrienne Crawford and Lily H. Heimburger represented landlords for this topic.

While there has been concern from tenants regarding rent increase, Heimburger and Crawford say these increases “tend to come with improvements to the properties;” however, tenants have been more swift to request cost breakdowns to know exactly how they benefit.

Most small businesses don’t have the economies of scale to survive “accelerating cost pressures” in the same way larger corporations do, according to Crawford. This is why they reap the effects of things like rent hikes, natural disasters, inflation and tariffs more.

While it is a “little bit of a sticker shock” for smaller local restaurants and retailers experiencing these increases, “it will benefit them in the end,” says Crawford.

Crawford believes retailers passing higher costs on consumers can help tenants make it through the hardest times and she is hopeful this can solve the problem.

“When the price of chicken wings went up, everyone had to increase their wing prices,” she said. “It’s happening across the board. You just see it more in the smaller restaurants than you do the larger chains and national concepts.”

Heimburger says fluctuations in triple-net prices have always been an element of leasing.

“It’ll right itself at some point, we hope,” she said. “This problem will hopefully be solved. It always gets solved.”

Read the full article here to gain more insights on rising rents and its effect on retailers and tenants.