Taubman Centers, owner of Tampa's International Plaza and other Florida luxury malls, tells tenants they still have to pay April rent
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Mar 30, 2020

Retailers at Tampa's International Plaza have been informed they still must pay April rent amid the global coronavirus pandemic.

The ownership, Michigan-based Taubman Centers, notified tenants in a memo obtained by CNBC that they "will be expected to meet their lease obligations.”

Michigan-based Taubman Centers (NYSE: TCO) owns several of Florida's most luxurious enclosed shopping malls, including Sarasota's Mall at University Town Center and Orlando's Mall at Millennia. Taubman owns 26 malls across the U.S. Its other Florida properties include the following:

Waterside Shops, Naples
The Gardens Mall, Palm Beach Gardens
Miami World Center, Miami
Dolphin Mall, Miami

"Landlord’s obligation to pay its lenders, utility companies, insurance companies and the like, to ensure the safety and security of the building and maintain the appropriate level of operations, remains," Taubman wrote in the memo. "The rental income that we receive from tenants is essential in order to meet these obligations."

On Monday, a spokeswoman for Taubman told the Business Journal it will be flexible with tenants during the outbreak and that it is already working with some of its tenants.

"We are attempting to navigate through this situation in the best way we can, while being as flexible as we can with our tenants in light of our ongoing obligations. The tenant memo does not replace our willingness to talk to each tenant about their respective challenges and help them chart an appropriate course for the future," a spokeswoman said in a statement. "In fact, we’ve had numerous calls with our long-standing tenants and most fully understand our position as it is a challenging time for all involved. Naturally, the environment is much harder for smaller, less-established temporary occupants that may only be operating in one center."

Taubman is in the same position as many commercial landlords. If retailers and restaurants struggle to pay rent, Taubman will struggle to pay the mortgage on its properties — significant financial commitments.

Cheesecake Factory, which has a location at Tampa's International Plaza and had planned another at Westfield Countryside in Clearwater, has already informed landlords it won't pay April rent.

International Plaza is a premier destination for retailers throughout Tampa Bay; the mall is home to the region's singular locations of luxury names like Louis Vuitton, Gucci and Mayors Jewelers.

However, like most enclosed shopping malls, it hasn't been immune to shrinking retail footprints or changing shopping patterns. In an effort to draw shoppers back to the mall, International Plaza was planning a new movie theater and Pinstripes, which includes an upscale bowling alley, bocce court and bistro. Enclosed malls, retail experts say, are likely to be among the property sectors hit hardest by coronavirus, which has forced retailers to close down and restaurants to operate on a takeout- and delivery-only basis.

International Plaza was one of the last Tampa Bay malls to close due to coronavirus when it closed on March 20.

Before the coronavirus outbreak, mall giant Simon Property Group announced it would buy Taubman in a $3.6 billion deal.