rent review

dub biz

I started a new business last year and things are going well so far. When I was negotiation the lease on the shop unit last year I got the rent down by 25% from what the landlord was looking for with an option to break the lease after year 1 but I must give 2 months notice if I were to do this. There is a vacant unit each side of me (owned by same landlord) and there are at least 3 more units within a five min walk that I could use, 2 of which have come on the market only in the last 2 months. I’ve inquired about 2 of the units and they are on the market at nearly 20% less than I’m paying at the moment.. That’s without negotiation!!
If I were to move I don’t think it would affect my trade so do you think the landlord will drop my rent again if I were to ask, explaining that the units beside me are still empty? Or do I go in bullish saying drop my rent or I’m going to look at the other units in the area. I’d rather he dropped the rent and I stay were I am but wouldn’t have a problem if I had to move up the road!

All Advice appreciated

gavney1

Personally, I would explain it to him exactly as you see it.

I don't think you need to be "bullish". Just say, listen,

"Times are tough for everyone, as I'm sure they are for you. I can go somewhere else for a 20% reduction, but that's obviously gonna cost me in moving costs, so how about you reduce my rent 17.5%. There are other places in the area for 20% less, so you aren't going to get a tenant at your current rate. So, if you drop by 17.5%, we both win - you get a 2.5% better rent than you would otherwise, and I don't have to move my store"

Southsider1

I'd be surprised if youe had to be 'Bullish'. As I said on another thread there's literally thousands of retail properties to rent on daft.ie so he'd be foolish not to discount - especially given that your neighbouring properties are vacant too.

dub biz

Thanks for the replies.

I don’t think bullish is the word I should have used, but I will be ringing him and asking him to review the rent