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Small Business Owners Battling Exorbitant Rent Increases

By aussielyn - 22 July 2012 13

Many commercial tenancies in local shops are forced to endure rental increases of 300% and are walking away from their businesses. Many tenants are on monthly agreements and so have no security. Commercial tenants may have agreements that include water; insurance and other add ons to rent that increase these costs.

Small business owners are being taken out by greedy landlords.

If you notice that your prices at your local shops are increasing and many shops are closing you can put that to the landlords. Of course, customers are not aware of the commercial relationship between a tenant and a property owner; this is commercial-in-confidence. A quiet word to a shop owner will confirm the reality, if they are willing to talk.

The Property Council will justify commercial property owners increasing their rents and putting leaseholders on monthly leases, as the right of landowner over servant like has been history.

They will be quiet in the pre-election period to keep both sides in control. Lib or Lab , two peas in a pod.

What’s Your opinion?


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13 Responses to
Small Business Owners Battling Exorbitant Rent Increases
rosscoact 11:08 am 23 Jul 12

I was in the business of showing people what sarcasm was and how to use it in forums. Unfortunately there was too many customers and it just wore me out trying to explain it.

dungfungus 10:42 am 23 Jul 12

rosscoact said :

G-Fresh said :

Small Business crying poor?

Bahhahahahahaha Good one!

You lot get too much assistance.

Yep, it’s all wine and roses in small business. Set up then sit back and watch the bucks roll in. Why on earth would anyone work for wages.

Please tell us all what small business sector you were in and what was your management style that made you so successful.

G-Fresh 9:57 am 23 Jul 12

rosscoact said :

G-Fresh said :

Small Business crying poor?

Bahhahahahahaha Good one!

You lot get too much assistance.

Yep, it’s all wine and roses in small business. Set up then sit back and watch the bucks roll in. Why on earth would anyone work for wages.

Try paying some taxes relative to your equity/income like the rest of us then you might get some sympathy.

rosscoact 9:47 am 23 Jul 12

G-Fresh said :

Small Business crying poor?

Bahhahahahahaha Good one!

You lot get too much assistance.

Yep, it’s all wine and roses in small business. Set up then sit back and watch the bucks roll in. Why on earth would anyone work for wages.

G-Fresh 9:22 am 23 Jul 12

Small Business crying poor?

Bahhahahahahaha Good one!

You lot get too much assistance.

dungfungus 8:29 am 23 Jul 12

Comic_and_Gamer_Nerd said :

dungfungus said :

The days of the large shopping malls are numbered.
On-line sales (massively understated by the federal government who are costing the states and territories cruical revenue by refusing to the collect GST being lost) and retail models like Costco have already changed the sector for ever.
My (free) advice to any commercial tenant is to review your situation now.

This is a good thing. We have been bent over by retail for years. They can either lower their prices or die off.

Just make sure that your super fund hasn’t got any shopping mall shares in your portfolio before you give momentum to the idea.

Comic_and_Gamer_Nerd 6:12 am 23 Jul 12

dungfungus said :

The days of the large shopping malls are numbered.
On-line sales (massively understated by the federal government who are costing the states and territories cruical revenue by refusing to the collect GST being lost) and retail models like Costco have already changed the sector for ever.
My (free) advice to any commercial tenant is to review your situation now.

This is a good thing. We have been bent over by retail for years. They can either lower their prices or die off.

dungfungus 7:26 pm 22 Jul 12

The days of the large shopping malls are numbered.
On-line sales (massively understated by the federal government who are costing the states and territories cruical revenue by refusing to the collect GST being lost) and retail models like Costco have already changed the sector for ever.
My (free) advice to any commercial tenant is to review your situation now.

Tetranitrate 7:21 pm 22 Jul 12

enrique said :

Nice rant! Did you wake up after a big night out/poor night’s sleep and just start mashing your keyboard. Forgive me for asking but I can’t help but thinking that since there is not much context or structure to your rambling there…

Anyway, don’t worry too much – It’ll all sort itself in the end… http://en.wikipedia.org/wiki/Invisible_hand

Market economics at play is all really.

Here’s another one for you:
http://en.wikipedia.org/wiki/Market_power

Westfield and Centro have a near duopoly – one of the many reasons why everything costs so damn much in this country – rents are passed on to consumers.

Androyd 6:41 pm 22 Jul 12

Whar narks me is how the Queensland Investment Corporation has so much control over so much retail space in Civic, and therefore over the whole dynamic of Civic – e.g driving retailers towards Canberra Centre and leaving much of the rest of Civic a derelict wasteland. If they had a stake in the quality of life here, things might look different, with all due respect to the invisible hand.

LSWCHP 6:16 pm 22 Jul 12

enrique said :

Nice rant! Did you wake up after a big night out/poor night’s sleep and just start mashing your keyboard. Forgive me for asking but I can’t help but thinking that since there is not much context or structure to your rambling there…

Anyway, don’t worry too much – It’ll all sort itself in the end… http://en.wikipedia.org/wiki/Invisible_hand

Market economics at play is all really.

I’m with enrique. Some examples or something to give this a bit more context would be helpful.

Elizabethany 4:47 pm 22 Jul 12

A few things are important here.

1) the major shopping centres are KNOWN for high rents, compulsory shop refits and moves depending on retail type. Business owners KNEW this when they move in, it is part of the payment for getting more customers. I don’t see many shops there empty for long, so it is obviously worthwhile.

2) If you are not in a shopping centre, then you have the flexibility to buy as shop rather than rent it. If you do not want to be at the mercy of a landlord, you have that option (and I notice many of them cost less than an average house).

3) Not all landlords are out to get you. The better relationship you have with your landlord, the less likely they are to try to kick you out. Be nice, pay rent on time and be willing to accept that prices rise over time. If you have had 10 years of nil to low rent increases, at some point they will have to raise it by more, just to cover their own expenses.

4) If you can’t afford renting or buying a property (or can’t get a loan), then maybe you business isn’t viable anyway. It is not up to the landlord to make your business viable.

enrique 1:23 pm 22 Jul 12

Nice rant! Did you wake up after a big night out/poor night’s sleep and just start mashing your keyboard. Forgive me for asking but I can’t help but thinking that since there is not much context or structure to your rambling there…

Anyway, don’t worry too much – It’ll all sort itself in the end… http://en.wikipedia.org/wiki/Invisible_hand

Market economics at play is all really.

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