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June 17, 2021

Travel Is Taking Off Again, But Airport Retail Still Struggles With Staffing And Debt

[In-Person] Hines, Stream, WorkSuites & KDC discuss the future DFW office in-person July 13

Airport foot traffic has been ticking up across the U.S. since the beginning of the year, reflecting a growing number of fully vaccinated travelers and public confidence in the decline of Covid-19 cases and deaths across the country.

It’s a welcome change for airport retail and restaurant operators, who took a major hit from the coronavirus pandemic in 2020. But even as sales continue to ramp up, concessionaires are struggling to find enough staff to open all their stores, let alone keep them staffed for the long hours traditionally required by airports.

“Just the callbacks, and staffing at a rapid pace that's quick enough to ramp up to the airports' recent increase in traffic, has been the biggest challenge,” Crews Hospitality President and CEO Nick Crews said.

Travel Is Taking Off Again, But Airport Retail Still Struggles With Staffing And Debt

Passenger volumes through U.S. airports have been rising since the beginning of the year, but received a noticeable bump around mid-March, when people opted to travel for spring break. That upward trend has continued into summer, which is typically the busiest period for travel.The U.S. Transportation Security Administration screened…

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New Rituals, Strengthened Bonds, Forgiveness: Fathers Of CRE Find New Perspective

Over the last year and then some, fathers across the commercial real estate industry formed new family rituals and bonds, struggled being suddenly thrust into the role of a teacher, and even marveled at how involved their own children became with their little offspring amid the coronavirus pandemic.

For Cedric Bobo, the founder of the real estate social impact training program Project Destined, Father’s Day this Sunday has a deeper meaning: He is finally able to forgive his own father.

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Pret A Manger, Facing Millions In Lawsuits, Is The Poster Child For Retail Landlord Limbo

At the southwest corner of Eighth Avenue and 39th Street, one of New York City’s dozens of Pret A Manger locations is sitting dark and empty, all its shelves bare. A sign on the door says it is temporarily closed through the end of the year while “we navigate these uncertain times,” and provides a QR code for the nearest delivery.

This particular location is just one of many in the city where Pret, as it is known, is being sued for unpaid rent. In a lawsuit filed last August, the owner of the building claims Pret owes nearly $200K in back rent and hasn't relinquished possession of the property. The attorney for the landlord, Ashkenazy Acquisition Corp., said the lawsuit is still pending.

In at least a half-dozen locations, the British grab-and-go concept, which makes its money on the bustling breakfast and lunch crowd, faces a similar fate, with city landlords claiming they are collectively due months in back rent. But with a moratorium on commercial evictions in place until the end of August and a sluggish leasing market, both sides are at something of a stalemate.

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