05/01/2024
Retail shop rent too high?
If you are trying to negotiate a new lease or your lease is coming up for renewal and the proposed new rent is way too high, you are not alone. But there is help ……
Due to the continual CPI increases that Australians have had to endure over the past year, this has led to excessive rentals on retail and commercial leases and throwing operational costs off the chart for most small businesses. This is now proving to be a real issue when negotiating a new lease with the landlord.
The Australian Bureau of Statistics (ABS) shows the monthly CPI indicator rose 4.9% annually to October 2023, with many states reaching in excess of 7% during 2023. See graph in link https://www.abs.gov.au/media-centre/media-releases/monthly-cpi-indicator-rose-49-annually-october-2023 The good news is that inflation has been purported to be starting to fall. But whilst this presents a welcome relief from the incessant increases of late, it does not help tenants who are trying to reach an amicable agreement with their landlords at this present time. So, what is the CPI prediction for Australia in 2024? The predictions are loosely in line with the RBA's estimate for CPI to be recorded at 4.75% this year and 3.5% in 2024. Australia's economic growth will also slow, according to the IMF, to just 1.6% this year and 1.7% in 2024.
So how can we help you at this current time?
Negotiating new lease rentals and commercial lease terms is becoming more stressful due to landlords insistence and non-flexible approach. This can be very time consuming for the tenant who is most likely at full capacity with running the operations of the business.
Lease negotiation is not easy and takes time, expertise and good communication skills by experienced property specialists who can advise and advocate the best commercial terms exclusively for the tenant.
Lease Negotiation Services is at hand to provide guidance and advice to ensure the best outcome of your new lease is obtained with a full range of services provided by fully licensed and accredited real estate professionals.
Call us now for a free consultation on 0401 996646 – we are here to purely help and support you - the tenant.
The monthly Consumer Price Index (CPI) indicator rose 4.9 per cent in the 12 months to October 2023, according to the latest data from the Australian Bureau of Statistics (ABS).
