SERVICES PROVIDED

  • Lease Renewal

CHALLENGE

  • 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.

STRATEGY

  • 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.

KEY FACTORS

  • 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.

RESULTS

  • 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.