Hartford Business Journal

what you don't want is uncertainty." Goldfarb said mall operators are actually well-suited to salvage busi- ness amid the health crisis because they have quality air-circulation systems and could provide tempera- ture checks, face masks and social distancing markers to improve consumer confidence. He estimates that 70% of national mall tenants are financially stable, while 20% have some rent restruc- turing in the works. The remaining 10% of tenants will close for good. Michael Gallon, a managing partner at Newington-based Reno Properties Group, said he agrees that larger retail properties like Westfarms are going to overcome COVID-19's impact. "Westfarms mall is going to be around and successful and work through something like COVID," Gallon said. "I think street retail will have the biggest challenges." Vacancies, lease restructuring The downturn has forced tough negotiations between landlords and tenants, and some small businesses are trying to use a force majeure provision in their lease contracts to delay or even skip rent payments, brokers said. But that still won't stop some small- to medium-size retailers from permanently shuttering because they can't afford an extended lease. "I think landlords will see increased vacancies from smaller to medium lo- cal and regional tenants that will not be able to continue in business with their retail locations," Gallon said. Amodio said some landlords are using new revenue-sharing lease deals instead of typical flat monthly payments. In the restau- rant industry, for example, rent is histori- cally about 8% of sales. That's now closer to 20% of sales due to newly mandated 50% seating ca- pacities, he said. "The vacancies will continue, and much of the retail space will be de- ployed for other uses," Amodio said. Rental conces- sions, though, are difficult for land- lords to shoulder because many Hartford tenants not based in malls are paying rents — in the $10 to $15 per-square- foot range — that leave property owners with thin margins, said Avner Krohn, one of the most active developers in downtown New Britain and other nearby towns. "It's very hard for any landlord to maintain a property, pay the most basic of debt service, and reduce rent," Krohn said, adding that some vacancies will be absorbed by new opportunistic retailers. Krohn, who owns Jasko Development LLC, said the health crisis has forced many shoppers ages 50 and older to adjust to online shopping, which could signal a major shift in consumer habits. "I think the only way you see a rebound in 2021 is with a vaccine or the virus dies out to some extent," he said. "Because any population that's at risk is not going out right now, and rightfully so." Avner Krohn, Owner, Jasko Development LLC Retailers big and small and restaurants are both feeling the pain from the COVID-19 pandemic. HBJ PHOTO | JOE COOPER HBJ PHOTO | JOE COOPER Be a part of the 2020 In these uncertain and challenging times, we know that now, more than ever how much nonprofi ts need support. The very best way to inform the business community about the opportunities to support that exist in your organization is to be part of the 2020 Giving Guide. It is an impactful way to share your message and the ways in which you are serving your communities. REACH THE BUSINESS MARKETPLACE The Giving Guide will be seen by over 35,000 people in our business community. It is delivered directly to all Hartford Business Journal subscribers and distributed at HBJ's signature events — as well as additional distribution through our strategic Giving Guide nonprofi t and sponsor channels. The Giving Guide digital edition is available at www.HartfordBusiness.com with direct links to our featured nonprofi ts' and sponsors' websites. To see a sample, please go to www. HartfordBusiness.com and click on Editions. GET INVOLVED For sponsorship and feature profi le information please contact: Donna Collins at dcollins@ HartfordBusiness.com or 860-236-9998, ext. 121. Click here to reserve your space in the 2020 Giving Guide! Business Gives Back www.HartfordBusiness.com | 860.236.9998 COMMUNITY & NONPROFIT EXCELLENCE Featuring the United Way of Central and Northeastern Connecticut Business Gives Back 2019 Annual 10 th "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, "No act of kindness, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, no matter how small, is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." is ever wasted." – Aesop – Aesop "No act of kindness, no matter how small, is ever wasted." – Aesop GREATER HARTFORD'S BUSINESS NEWS WWW.HARTFORDBUSINESS.COM VOLUME 27 • NUMBER 36 $19.95 NOVEMBER 4, 2019 Sponsored by:

• Cover