Starbucks And Landlords Battle Over Store Closings
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When Starbucks announced that it was closing or putting off opening 600 stores, Wall Street applauded. But the flip side is that it has caused a great deal of angst by landlords and developers that were using the coffee shops as anchor tenants.
Having a high paying (and high traffic) Starbucks in ones shopping center was a great selling point for other tenants. So when the announcement came that the company was shutting down stores or not going to develop on leases they have already signed, landlords are getting nervous.
Especially going into slow time these landlords are not letting Starbucks out of the leases they signed. The battles between what was once the most favored tenant Starbucks and the landlords are starting to hit the courts.
I still blame the real estate agents for Starbucks troubles.
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, but the anger isn’t limited just to litigants.
Starbucks, which is facing slow sales and weak earnings growth as customers cut back on lattes and Frappuccinos, intends to shut down more than 600 U.S. locations by early next year as part of a broader plan to revive the company.
The lease battles represent a turnabout for Starbucks, which has been one of the most sought-after retail tenants of the past decade. The chain helped draw other retailers to shopping centers and spent top dollar to get the best real estate during its rapid U.S. expansion. via WSJ.com
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
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Comment by Rachel from www.ourbania.com on 30 October 2008:
I am not so sure about real estate agents being the culprits in the demise of Starbucks. Perhaps Starbucks should have taken a cue from McDonald’s and put a cap on the maximum proximity in which stores can be near to one another. In my city, there is a Starbucks on two parallel streets, and the distance is minimal!!! Was that the real estate agents fault? Or should the corporate policy also be reexamined?