Rent cut negotiated
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.”