Market Review – but business owner prepared to vacate
Existing Gross Rent: $240,000 p/a
GEM™ Evaluation: $120,000 p/a
By negotiation new rent: $175,000 or thereabouts
Total 5-year Benefit: $345,000
Five yearly market review. New lease terms forced upon business owner using leverage off another lease. That Landlord divested centre on an unsuspecting inter-state “investor” at quite inflated rents, which became well in excess of Market Rent.
A GEM Lease Analytics™ report supported $120,000 for a second time. The new Landlord should have done more thorough due diligence (eg. called for a GEM Lease AnalyticsTM report) into accepting new lease terms or face a vacancy from his major anchor. A quite large adjoining food operator simultaneously downsized their tenancy, enabled due to changes in technology.
This became a double blow to the new landlord. These arguments go two-ways, but a GEM Lease Analytics™ report can better inform any party to a lease.
