How the government’s inaction on retail tenancy in this COVID-19 world is problematic for small business retailers
The Prime Minister late yesterday asked business owners and landlords to sit down and work with each other to find a solution to the retail tenancy challenge presented by the restrictions imposed in government responses to COVID-19.
Based on my work with retailers in many situations, city, country, high street and mall, the approach of sitting with landlords will not work for most.
While some individual landlords have already delivered practical help with rent holidays and rent discounts, too many have not. In the shopping mall situation, I am not aware of any of the major landlords like Westfield offering any financial support. Indeed, in my now experience with Westfield, their approach has been quite threatening – don’t close, pay your rent on time.
At the independent landlord point, I have seen discounts as high 75% for six months put in place, April / May rent free in a couple of situations. The most common discount I have seen is 50% off for April with a commitment to reassess.
My experience is that independent landlords are more likely to act sooner and at a more valuable level.
This is where the Prime Minister’s announced approach is problematic as it relies on too much work to be done, too many conversations to be had. Big landlords like Westfield operate in silos, they treat each tenant differently with independent small business retailers usually be treated worse than big retailers.
What we need is national consistency. We need this urgently. We need the federal government to set a position, urgently, that all – retailers and landlords – can rem;y on as a single national position. Without this. the weak will carry the higher per square meter cost, as is the case today.
I urge the Prime Minister and others in authority to resolve this nationally for the benefit of the mental and financial health of small business retailers.
We have been hearing about something coming for two weeks. With each day that passes with no decision, the perspective and health of those so desperately waiting deteriorates and this is problematic for their businesses and those who rely own their businesses.
We can’t trust the Westfields of the world to fix this. They have no track record in this regard. This is something the federal government needs to address, and urgently.


















