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Malls are closed but pay rent anyway

One of the nation’s largest mall owners is instructing its tenants to make their rent payments even though their malls are closed due to the coronavirus pandemic.

A letter sent to Taubman Centers nationwide and obtained by USA TODAY shows the company’s directive to its tenants to make their payments on time.

“Landlord’s obligation to pay its lenders, utility companies, insurance companies and the like, to ensure the safety and security of the building and maintain the appropriate level of operations, remains,” Taubman told tenants in the letter. “The rental income that we receive from Tenants is essential in order to meet these obligations. All Tenants will be expected to meet their Lease obligations.”

The company said in the letter that it had received “numerous inquiries” from tenants regarding potential rent relief.

With 15.8 million square feet of space, Taubman Centers is the 16th largest mall property owner in the country, according to real estate data source CoStar Group.

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