The acting CEO of KIMCO recently revealed something new and startling on Jim Cramer’s business show, that it’s in the best interests of this commercial real estate giant to see big renters and companies fail to in order to vacate commercial properties with leases 20 years or older so they can raise the rent. KIMCO rents mall property to some of America’s largest commercial business and household name stores, so it was shocking to see that the company actually wants older businesses who penned a real estate lease some years ago to fail, close or move so that this commercial real estate company can only continue to raise rents.
Just as many retailers struggle through the recession and lay off workers and ponder closing locations, KIMCO only continues to raise rents, which are up over last year as an average. It seems that the poor condition of the economy has little to do with the average rent a business pays. One the other hand, with 94% of KIMCO’s properties now rented, supply and demand only seems to keep raising the cost of rents and leases, even if many companies are actually struggling to make any profit and avoid losing money.
Suddenly, those outrageous theories of Karl Marx regarding land and private property seem to strangely ring true.