Following my post a couple of days ago about the 5% annual rent increase faced by most newsagents in shopping centres comes the news that a newsagent of at least 20 years standing is facing the loss of his business because he will not agree to the landlord’s offer of a new lease at a 35% premium to the current rent.
I can see no justification for such an increase. The newsagent is fighting – but this takes time, money and stamina.
I know of another newsagent who faced a slightly larger increase and moved his business as a result but only being in a strata titled centre made this possible. It is obviously not possible in centres under one ownership.
Other traders in this centre must be getting the same raw deal. Correct me if I’m wrong but from my long past days in real estate, I am sure there is a provision to fight unconscionable rent increases via VCAT in Victoria and I would expect similar action would be possible in other states. If the tenants banded together for a class action if that is possible through such a body, surely that would sort out the landlord and send other landlords a message. I know of another newsagent who faced a slightly larger increase and moved his business as a result but being in a strata titled centre made this possible.
This happened in our area a couple of years ago, The newsagent was able to get it taken to a mediation hearing and through this achieved a reasonable out come.
A much better approach than Lawyers at dawn and coffee for on.
is it possible for a newsagent to be owner occupiers? Is it worth asking the landlord to sell……to avoid rent increases etc
Not in a major shopping centre.