Attracting and retaining tenants for brick-and-mortar businesses has been a challenge for landlords due to the coronavirus pandemic. And as a result, retail and restaurant tenants have requested to modify their leases — specifically to include revenue sharing, according to technology solution company Guesst.
To help create and expedite revenue sharing opportunities, Guesst — a firm that helps develop “new retail” by empowering brands, retailers, restaurants and property owners to “reimagine” said businesses — launched Net-Share, a transparent net sales reporting cloud-based platform that enables the daily gathering of accurate, timely reporting of the sales each tenant is generating.
Net-Share integrates with a retail or restaurant tenant’s POS system, allowing landlords and tenants to automatically receive a daily net sales report that includes pertinent information about daily and monthly sales totals, the company said. The report will only include information agreed to by the tenant and landlord, and no customer data or individual transaction information will be reported or recorded, all according to Guesst.
Its software calculates rent owed based on the sales percentage agreed to by both parties — and as an option, its “Net-Share Collection” program can collect and remit percentage rent payment automatically, Guesst said. And, multiproperty owners “can opt to have all of their retail and restaurant tenants connected to the Net-Share platform, regardless of their individual POS systems,” allowing for flexibility and inclusivity.
Jay Norris, chief executive officer at Guesst, said, “Trust and transparency is what Net-Share is all about. With our platform, both landlords and tenants will have access to reliable daily information and can have informed conversations about their financial relationship. It’s a win for both parties.”
Retailers and restaurants that have struggled to pay rent during the coronavirus pandemic have requested a slew of lease modifications, including rent reduction, deferred rent where missed payments are added to the end of the lease term, and revenue sharing through which the landlord reduces the monthly rent in lieu of a percentage of the tenant’s net sales, Guesst said.
“Lease modifications can be a good solution, but they may create new issues, especially if shared revenue is involved,” Norris explained. “The landlord must rely on reporting from the tenant who, in turn, has the burden of creating sales reports each month, on time, and with accurate information. It becomes difficult for both sides to manage. Our platform reliably and automatically provides that information to both landlords and tenants.”
Registration is now open, and landlords interested in the platform can apply through Guesst’s web site. And, the first 100 landlords that register and successfully enter their first deal into the platform will have three months of free access to Net-Share.
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