React: If a shopping center has 70% of its space leased for the next 30 years to a supermarket anchor, the owner does not have to worry very much about local market conditions because 70% of their available space will be off the market for the next 30 years.
Due to declining market conditions, the local supermarket may be unable to meet its lease cost.It may also be unable to meet its other costs due to which it may start running losses. This implies that the lease will not be paid regularly or may even stop due to bankruptcy of the lessee. Hence if the space is leased out, it does not mean that the payments are secure.Moreover the balance 30% of space also has to be utilized since there would be a huge cost of owning and maintaining it.
React: If a shopping center has 70% of its space leased for the next 30 years...