American Eagle sues Westfield over San Francisco Centre crime

[ClownLoach]

Here we go again. I heard that mall tenants are starting to sue their landlords over various conditions but this is the most high profile case so far.

American Eagle decided to sue Westfield for neglecting San Francisco Centre and allow crime to get out of control. They're claiming over 100 violent incidents including gun crime. Unfortunately due to the media source I'm sure things are a little bit blown out of proportion, but having managed a similar high crime problem area store I also had at least 100 of what I would call escalated incidents in a similar time frame so it could be true?

Malls charge for common area maintenance, and the fees can be very expensive - for a high end mall like a Westfield flagship they could be equal to monthly rents. Those CAM fees are supposed to pay for security, and as a result American Eagle probably has a good case here. My guess is it'll disappear from the headlines because they'll probably settle for a cost free lease termination... They're signed until 2028...

https://nypost.com/2023/09/12/american- ... n-rampant/

[buckguy]

Here we go again. I heard that mall tenants are starting to sue their landlords over various conditions but this is the most high profile case so far.

American Eagle decided to sue Westfield for neglecting San Francisco Centre and allow crime to get out of control. They're claiming over 100 violent incidents including gun crime. Unfortunately due to the media source I'm sure things are a little bit blown out of proportion, but having managed a similar high crime problem area store I also had at least 100 of what I would call escalated incidents in a similar time frame so it could be true?

Malls charge for common area maintenance, and the fees can be very expensive - for a high end mall like a Westfield flagship they could be equal to monthly rents. Those CAM fees are supposed to pay for security, and as a result American Eagle probably has a good case here. My guess is it'll disappear from the headlines because they'll probably settle for a cost free lease termination... They're signed until 2028...

https://nypost.com/2023/09/12/american- ... n-rampant/

American Eagle, itself, hasn't been doing so well. I wonder if this is a ploy to get rent reductions in other Westfield malls and posture for other landlords. I didn't do an exhaustive search but they have 2 locations at Garden State Plaza, 2 at Montgomery (both considered to be relatively strong Westfield malls) and even though AE is stagnating (at best), the probably retain some value as a standard tenant.

[ClownLoach]

Here we go again. I heard that mall tenants are starting to sue their landlords over various conditions but this is the most high profile case so far.

American Eagle decided to sue Westfield for neglecting San Francisco Centre and allow crime to get out of control. They're claiming over 100 violent incidents including gun crime. Unfortunately due to the media source I'm sure things are a little bit blown out of proportion, but having managed a similar high crime problem area store I also had at least 100 of what I would call escalated incidents in a similar time frame so it could be true?

Malls charge for common area maintenance, and the fees can be very expensive - for a high end mall like a Westfield flagship they could be equal to monthly rents. Those CAM fees are supposed to pay for security, and as a result American Eagle probably has a good case here. My guess is it'll disappear from the headlines because they'll probably settle for a cost free lease termination... They're signed until 2028...

https://nypost.com/2023/09/12/american- ... n-rampant/

American Eagle, itself, hasn't been doing so well. I wonder if this is a ploy to get rent reductions in other Westfield malls and posture for other landlords. I didn't do an exhaustive search but they have 2 locations at Garden State Plaza, 2 at Montgomery (both considered to be relatively strong Westfield malls) and even though AE is stagnating (at best), the probably retain some value as a standard tenant.

No mall chains are doing well. I've read notes here and there of other mall chains filing lawsuits, but this being San Francisco it was thrust into the media circus, I mean media spotlight. I'm sure all of these disputes are intended to be settled with waived lease severance fees thus enabling the stores to close without paying dead rent or doing mass closures followed up with a bankruptcy to cancel the leases (which puts the organization at risk of being liquidated if the trustee decides to auction the company in an effort to better repay their debts). I expect more and more of these suits as mall deterioration, despite being predicted for decades, has rather suddenly reached critical mass in the last few years and pushes the mall only retailers into insolvency.