It’s terrific to see Mark McInnes speaking out about gouging by landlords as reported by The Age today. Landlords are killing the Australian newsagency with their current 5% rent increase for a channel where the price of much of what we sell is outside our control. See what I said about this a few weeks ago.
Fantastic string of comments after that article Mark. I am always highly amused to see the two candle shops in the Mall adjacent to us. They must be on free rental just to fill voids, I just can’t see how they sell anything near enough goods to earn a wage and pay a rent. Or perhaps they are businesses run at a loss on purpose……. I also note that each fashion closure is being replaced by coffee coffee coffee, and although our main street has minimal vacancies at the moment, I wonder for how long. I am very interested to read in more than one place in the last week that our Oz dollar may very well drop back considerably in value – now that could have an interesting effect on the economy.
I urge all newsagents and small business to take on their landlords wherever possible. We are been screwed by a divide and conquer campaign. The landlord will ask for a 45% increase and negotiate down to a 7% increase and the incumbent thinks they are getting a good deal. “phew “ only 7% they say. Compare it to others in the centre, share your rental information with anyone in the centre and in other centres. Why keep it a secret it only helps the landlord. Where possible look for another alternative. We should campaign against a large shopping centre being owned by 1 landlord. That is a monopoly. Each shopping centre should have a maximum 50% and the rest are strata titled. Then you would have a choice of landlord. Why does Coles pay $200sqm when you are paying $1000sqm. Why is it that you only have goodwill when you have a lease to sell and why do you have to refurbish every 5 years regardless of how good it looks. They are able to allow another newsagency or gift and card shop in next door. Coles would not accept that. Take them on whenever you have an opportunity in this climate Go to the tribunal and the business council when a market review is due and use the valuers even if it costs you. Landlords operate on fear and the concern is that you will lose your business. The chains like Subway use their power to negotiate much better rents than a single owner restaurant. We should use Newspower or Newsexpress and Lotterywest to negotiate much better leases. Most of all share your information with other small business. We may end up with a spiral down rather than a spiral up particularly as some large organisations are going broke and walking away from their leases.
Anybody in a shopping centre had any recent success in negotiating lower sqm costs for lease renewals? We have some empty shops in our mall and yet the landlord wants an increase to out present levels.
Yes, 30% reduction.
Not quite a success yet – but going for 50%. Hopefully our approach will get us over the line. Landlord stll has sticker shock.
Good luck Peter. We all need to fight this. There are newsagents winning. Not enough yet, but some.
Mark, Just wish we did not have this stupid clause in th lease that gives the landlord upto 12mths post review to determine rent. Its hard trying to remain civil and composed when they are doing nothing but delaying, cause they can.
we are currently in dispute with our landlord in regards to the rental to be paid. There is to be a review carried out by a licensed valuer and I require comparison rents that others are paying particularly in Perth WA and what I consider to be neigbourhood shopping centres. I am at Belridge S/C. I seek assistance in either directly discussing with any one willing to share this information or sending me directly evidence that I can give to the valuer.I need the information urgently as it will need to be presented to the valuer in a manner acceptable to him.
The information i require is the actual rental on an annual or monthly basis and please include all out goings other than electricity. Either combined or separate doesn’t matter as long as it is stated. Exclude GST or if it includes GST please say so. Finally the size of the shop in square meters and when last the rent was reviewed and/or set would help. This information will be in strict confidence and only used for the rental review.The following info is required.
Name and contact phone
Site Name
Rent per annum
$
Outgoings per annum
$
Other costs such as land tax
Total
GST included
yes/no
When last reviewed
Size of Shop in sqm
email:wallydog@iinet.net.au
I believe that taking them to determination will help all of us as any rent set will be used as a benchmark in future cases. I am happy to share any information with fellow newsagents as we need to help each other against greedy landlords.
Thank you to all in anticipation.