DJs to push for shorter leases

David Jones wants shorter lease terms, asking shopping malls to reduce standard rental agreements from 25 years to 15 years.

Paul Zahra, the chief executive of David Jones, has publicly called for shorter lease terms and tougher negotiations with retail landlords.

They are pressuring shopping malls and retail landlords to make concessions because online sales are threatening in-store trade, prompting a rethink of traditional leasing arrangements.

No. Paul Zahra said the company has 'no reason to open another store unless those rental agreements reach our terms and conditions.'

Both retailers are playing hardball and actively pressuring shopping malls and retail landlords to agree to concessions and shorter leasing arrangements.

The article specifically mentions David Jones and Myer as the retailers pushing shopping malls and landlords for concessions on lease terms.

They are targeting the length of lease terms, aiming to cut typical rental agreements down from around 25 years to roughly 15 years.

Paul Zahra made the comments on Nine's Financial Review Sunday program, as reported in the article.