Rent cut ne­go­ti­ated

Western Suburbs Weekly - - News - By ROSANNA CANDLER

SUBIACO jeweller Thomas Mei­hofer re­cently ne­go­ti­ated a $10,000 re­duc­tion in the an­nual lease of his 117 Rokeby Road shop.

Mr Mei­hofer said prop­er­ty­owner Ian Doubikin helped buck the trend of high rents in the Subiaco CBD by open­ing up di­rect com­mu­ni­ca­tion be­tween the two par­ties.

“We still have five years left on our lease, and by sit­ting down to­gether we found out that we both wanted the same thing: a longer com­mit­ment,” he said.

“We were will­ing to sign up for a two-year ex­ten­sion to give the land­lord se­cu­rity of ten­ancy and as a con­ces­sion, we ne­go­ti­ated a re­duc­tion.

“Hope­fully this will help set the tone for fu­ture rent ne­go­ti­a­tions in Subiaco.”

A Beau­ti­ful City direc­tor Ni­cholas Takacs said he helped Mr Doubikin dur­ing the mar­ket rent re­view.

“In our re­cent street au­dit to de­ter­mine mar­ket rents in Subiaco, which re­sulted in the rent de­crease men­tioned, rents were ob­served from $450 to $1200/sqm,” he said.

“The fi­nal rent at Thomas Mei­hofer Jew­ellery De­sign came to about $795/sqm, in­clud­ing out­go­ings on a 140sqm shop.”

Mr Mei­hofer said re­cent pub­lic­ity re­gard­ing Le­p­ley Prop­er­ties’ 66 per cent rent in­crease at Hay Street restau­rant Bistro des Artistes ap­peared to be symp­to­matic of a land­lord want­ing to meet prof­its rather than tak­ing a long-term view.

“Of course, the land­lord can in­sist on trans­lat­ing the legal doc­u­ment as gospel, but are empty shops re­ally in the long- term in­ter­ests of the land­lord?” he said.

A spokes­woman for Le­p­ley Prop­er­ties’ hold­ing com­pany Sa­nur said there was no clause in Bistro des Artistes’ lease to al­low for ne­go­ti­a­tion if the com­mer­cial mar­ket changed, as it “would negate the whole na­ture of a lease as point­less”.

“There is no doubt that in years gone by some land­lords in Subiaco have re­duced their rents, how­ever th­ese are iso­lated in­stances and across the board rents in good lo­ca­tions for pre­mium spa­ces re­main firm and on an up­ward trend,” she said.

“It is Sa­nur’s busi­ness to know the rental mar­ket in this lo­cal­ity and its rental charges are based on in­de­pen­dent ad­vice, which is pro­vided to them by ex­pe­ri­enced valuers.”

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