In this case, the tenant was an experienced business owner and had a market review with 5 + 5 + 5 years with 4% increments left on his lease. Given that there had been significant competitive infill in the catchment, the owner decided to invest in a GEM Lease Analytics™ analysis and report suite to understand what a “reasonable rent” might be under the current circumstances.

With the GEM™ graphs and report in hand, and a landlord well aware of the challenges facing his tenant, the parties negotiated a new annual gross rent of $50,000 with 4% increments. This agreement effectively transferred $30,000 from the tenant’s fixed costs to his return on business investment, but the landlord also benefited as the business owner invested in new shopfront branding and fitout, which refreshed the whole precinct, thereby increasing the overall value of the landlord’s property.