“We have owned many butcher shops and until recently owned two shops, one in a supermarket-based centre with a major landlord and the other in a Regional Centre with a private landlord.
We wanted to secure a new lease at a reasonable rent before we sold the store to an employee. The asking gross rent was $92,500 but our retail advisor used the GEM Method™ to present a solid case for a gross rent of $75,000, which was agreed to. It felt good to pass on a $17,500 annual savings on a 5-year lease to our former employee.
Our other shop’s annual gross rent was way too high at $170,000 – the result of a poorly negotiated lease – and it had 4+ years to run. Our landlord was open to changing it but needed some numbers and justification. The graphs and report from a GEM Analysis™ supported our case for a reduction to $105,000. The outcome of negotiations was an annual gross rent of $120,000. Whilst this is still uncomfortably high, at least we can still offer our customers a good quality product.”
Respected QLD Butcher, 2017