Given that most restaurant leases are for 5 to 10 years, many of which were set during the crazy years, a lot of people are locked into terrible lease rates and getting out via an exit clause or bankruptcy may be the only way.
This is a bit of a market correction just like what you see with O&G. The lease rates for commercial retail tenants need to drop in this town to support some vibrant businesses. The big tenants and office towers have all dropped their rates significantly as we are looking at something like 25% vacancy but the retail and small side of commercial is still jacked up.
Mom & Pop shops are more desperate to make money, with little to fall back on, and landlords are exploiting that.
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