Hawkwind
FH is my second home
- Joined
- Jul 5, 2004
- Messages
- 7,541
You can't control rents in that manner or you'll never get any investment. Why the fuck would buy a £1million retail building if they knew they could only get £5,000.00 a year rental?
Parking control killed off high streets in any event. I can't be bothered using any of the ones near me simply because that £20 item I could get from the local electrical store will likely land me a £60 parking fine if my tyre slightly touches a kerb stone.
I think the real underlying issue in a lot of these things is that they negotiate stupid deals when times are good that cripple them when times are bad, you don't need 100's of stores everywhere you need profitable stores.
Agreed, but rents in some city centers are absolutely astronomical. Friend of mine ran a small boutique shop in Basingstoke, owned by the Prudential. When they first moved in they were paying rent of around 30k per year. 4 years later that more than doubled to 70k. They had to close down. I totally agree that any investors have to be able to make a reasonable profit but the kinds of rents these companies are asking for are totally unreasonable. Rents controls are used by many countries, even the UAE, to stop massive escalations. Personally I think it's a good idea. The business case for the building owners just has to take it into account. Putting rates up well above inflation is simply not fair to the small businesses in those premises.