Challenge - our instruction was to advise on whether to serve a Section 26 Notice or to hold over at the passing rent
- Our instruction was to advise on whether to serve a Section 26 Notice or to hold over at the passing rent.
- Explore any opportunities for a possible relocation. Enter into negotiations with the landlord of the demised premises in relation to a possible lease renewal.
- Colliers International advised the client that based on market evidence they should expect a decrease in the rent passing or a substantial rent free period on the subject unit. Contact was also made with a landlord of an alternative property within the vicinity which was being marketed, to ascertain whether a more competitive package could be obtained, whilst continuing with negotiations on their existing store. Recommendations were put forward to the client for both their existing store and an alternative property.
- Alternative options for occupation other than existing store explored.
- Rental valuation undertaken of the demised premises and alternative property.
- Detailed negotiations undertaken with the landlord’s surveyor on the demised premises and alternative property.
- Substantial rent free period negotiated on subject unit despite a recent letting next door which received 3 months rent free incentive.
- A new 10 year lease was negotiated at the passing rent with a tenant break option at the expiry of Year 5 and with a 12 month rent free period.