At STORE Capital, we believe you should be in charge of your operational flexibility. That’s why we recommend making substitution rights a part of your leases. This important element would enable you to substitute a successful asset in place of an underperforming asset which would reduce costs on that asset.
Substitution Rights
Substitution rights allow you to take an underperforming property out of a lease.
Addressing underperforming locations through substitution rights is similar to buying an insurance policy against a property’s downside risk. We call this opportunity cost containment.
Use Substitution Rights to:
Maximize operational flexibility
Limit your downside risk
