January 19, 2018
Glaser Weil Real Estate Partner Peter Breckheimer was quoted extensively by Law360 in a January 19, 2018 lead article titled, “Simon-Starbucks Case May Give Landlords A Legal Roadmap.” The article discussed the potential implications of a recent settlement between Starbucks Corp. and mall owner Simon Property Group related to a 2017 court ruling that ordered Starbucks to keep open dozens of Teavana stores it had previously intended to close. The judge's decision was based on language in Starbucks’ lease agreement.
Mr. Breckheimer commented that "[the ruling] gives landlords now the power and the ammunition to not get pushed around by larger chains like Starbucks.” He further noted that "from the tenant's perspective, they'll want to revisit [certain aspects of leases]. A lot of landlord's leases for regional malls ... contain fairly landlord-friendly [language] to begin with.”
Mr. Breckheimer asserted that he “think[s] it's critical that Simon did this, not only for themselves, but for the broader community of landlords out there that have retail assets.” One important detail that he highlighted was that the Indiana judge acknowledged that Starbucks is not going out of business.
To view the full article, please visit Law360 (subscription required).