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Property: Will rent go down?

I have heard that rents are going to coming down because of the tough economy and because of all the new centres opening. I want to open a couple more stores but I wonder if I should hold out and see if I can get a good deal on rent. Also, what sort of incentives should I expect from landlords at the moment?

Nigel Poad, CEO leasing director, Modus Venture Ltd:
Clearly the current market conditions market conditions are making everybody reconsider pricing and landlords are no different. I am certain there are a number of landlords out there that are desperate to find tenants and will offer very attractive packages to entice them in!

The huge amount of new retail space that is currently coming to the market does put the retailer in a strong negotiating position and I am certain that many are taking advantage of this. What is good to hear is that retailers like yourself are still looking to expand, which is the sort of good news we all want to hear.

Readers' comments (1)

  • Sorry to butt in here, but that reply was so woolly.
    Rents won't come down significantly for a few years.
    There is a lot of 'Cloaking' going on in the market.
    Cloaking is where LL does a rent free period but doesn't declare it. This, in effect, ghives new tenant a lower rental until next rent review (typically 3 years) so ; agrees £30k pa but 1 yr rent free equates to 3 yrs costing £60k (not £90k). If it is not cloaked, a neighbouring tenant will use this evidence in their rent review (a process where LL shafts existing tenant for as much as he can get away with). A neighbouring chain has just had a significany rent reduction mid lease. It is cloaked. I can't use it in my rent review.

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