Lease Pro Report

Lease Pro Report

ABCDE Jeweller
Proposed site: Shop 123, 456 Major Boulevard, Mayfair Shopping Town

Lease Pro Report

Your secret weapon to negotiate the lease you want!

www.leaseproreport.com

Lease Pro Report

Your secret weapon to negotiate the lease you want!

www.leaseproreport.com

ABCDE Jeweller, Shop 123, 456 Major Boulevard, Mayfair Shopping Town
Site and Neighbouring sites analysis
Below are tables of leases past and present relating to the geographical location of the Proposed site: Proposed site:
Centre Shop# Lessee Size sqm Com. date Exp. date Term Option Original rent 122,250 101,000 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 24,750 Permitted use Food Fashion

ABC ABC

1042 1042

Icy drink Easy fashion

213 213

15/12/12 30/10/06

14/09/18 29/10/12

6yr 6yr

No No

573.94 474.18

7% 5&

6529 5050

CPI+2% CPI+2%

Neighbouring sites:
Centre Shop# Lessee Size sqm Com. date Exp. date Term Option Original rent 122,250 101,000 90,000 789,000 24,303 19,000 289,000 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 24,750 45,931 45,931 45,931 45,931 45,931 Permitted use Food Fashion Fashion Fashion Fashion Fashion Fashion

ABC ABC ABC ABC ABC ABC ABC

1041 1039 1038 1037 1036 1043 1044

888 fashion men hat shoes shoes gadget me Key cut Watches Mobile 1

213 213 67 56 35 89 56

15/12/12 30/10/06 30/10/06 30/10/06 30/10/06 30/10/06 30/10/06

14/09/18 29/10/12 29/10/12 29/10/12 29/10/12 29/10/12 29/10/12

6yr 6yr 6yr 6yr 6yr 6yr 6yr

No No Yes Yes Yes Yes Yes

573.94 474.18 474.18 474.18 474.18 474.18 474.18

7% 5& 5& 5& 5& 5& 5&

6529 5050 5050 5050 5050 5050 5050

CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2%

ABCDE Jeweller Lease Pro Report

Lease Pro Report

Centre

Your secret weapon to negotiate the lease you want!

Lessee Size sqm Com. date Exp. date

www.leaseproreport.com
Term Option Original rent 84,300 24,902 10,303 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 45,931 45,931 Permitted use Fashion Fashion Fashion

Shop#

ABC ABC ABC

1045 1046 1047

Yummy

45

30/10/06 30/10/06 30/10/06

29/10/12 29/10/12 29/10/12

6yr 6yr 6yr

Yes Yes Yes

474.18 474.18 474.18

5& 5& 5&

5050 5050 5050

CPI+2% CPI+2% CPI+2%

Baby change 67 Gifts4U 37

Comparative analysis for your category of business

Similar businesses:
Centre Shop# Lessee Size sqm Com. date Exp. date Term Option Original rent 122,250 101,000 122,250 101,000 122,250 101,000 122,250 101,000 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 24,750 45,931 24,750 45,931 24,750 45,931 24,750 Permitted use Food Fashion Food Fashion Food Fashion Food Fashion

ABC ABC ABC ABC ABC ABC ABC ABC

1042 1042 1042 1042 1042 1042 1042 1042

Icy drink Easy fashion Icy drink Easy fashion Icy drink Easy fashion Icy drink Easy fashion

213 213 213 213 213 213 213 213

15/12/12 30/10/06 15/12/12 30/10/06 15/12/12 30/10/06 15/12/12 30/10/06

14/09/18 29/10/12 14/09/18 29/10/12 14/09/18 29/10/12 14/09/18 29/10/12

6yr 6yr 6yr 6yr 6yr 6yr 6yr 6yr

No No No No No No No No

573.94 474.18 573.94 474.18 573.94 474.18 573.94 474.18

7% 5& 7% 5& 7% 5& 7% 5&

6529 5050 6529 5050 6529 5050 6529 5050

CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% CPI+2%

Comparative analysis for similar size sites neighbouring your Proposed site
Similar size sites neighbouring your Proposed site:
Centre Shop# Lessee Size sqm Com. date Exp. date Term Option Original rent 122,250 101,000 101,000 101,000 101,000 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% CPI+2% CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 24,750 24,750 24,750 24,750 Permitted use Food Fashion Fashion Fashion Fashion

ABC ABC ABC ABC ABC

1042 1042 1042 1042 1042

Icy drink Easy fashion Easy fashion Easy fashion Easy fashion

213 213 213 213 213

15/12/12 30/10/06 30/10/06 30/10/06 30/10/06

14/09/18 29/10/12 29/10/12 29/10/12 29/10/12

6yr 6yr 6yr 6yr 6yr

No No No No No

573.94 474.18 474.18 474.18 474.18

7% 5& 5& 5& 5&

6529 5050 5050 5050 5050

CPI+2% CPI+2% CPI+2% CPI+2% CPI+2%

ABCDE Jeweller Lease Pro Report

Lease Pro Report

Centre

Your secret weapon to negotiate the lease you want!

Lessee Size sqm Com. date Exp. date

www.leaseproreport.com
Term Option Original rent 122,250 101,000 122,250 101,000 Rent/m2 Rent inc. yr 1 CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 2 CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 3 CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 4 CPI+2% CPI+2% CPI+2% CPI+2% Rent inc. yr 5 CPI+2% CPI+2% CPI+2% CPI+2% % Rent Promo fund Promo inc. Bank guarantee 45,931 24,750 45,931 24,750 Permitted use Food Fashion Food Fashion

Shop#

ABC ABC ABC ABC

1042 1042 1042 1042

Icy drink Easy fashion Icy drink Easy fashion

213 213 213 213

15/12/12 30/10/06 15/12/12 30/10/06

14/09/18 29/10/12 14/09/18 29/10/12

6yr 6yr 6yr 6yr

No No No No

573.94 474.18 573.94 474.18

7% 5& 7% 5&

6529 5050 6529 5050

CPI+2% CPI+2% CPI+2% CPI+2%

Lease Pro Report General Lease Negotiation Advice:

Disclaimer: Any advice contained in this document is of a general nature only and does not constitute leasing consulting advice. In preparing the advice no account was taken of the objectives, nancial situation or needs of any particular person and or business. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant information having regard to your business objectives, nancial situation and needs. You shall be solely responsible for and shall indemnify Lease Pro Report and its employees or suppliers or agents, against liability for all claims of loss, damage, to business(s) caused by or arising out of the information provided.

1.

We would talk to the manager in person. Its always easier to communicate in person to get understanding of your situation. This is when you can demonstrate your xed margins, minimal improvement in sales.

2.

We would threaten to leave (this needs to be used with care!!!) if the terms are not favourable. We would focus on the fact that you are a good tenant and wants to be there for a long time eg. 12 yrs or 10 yrs.

3. 4. 5.

Rent reduction message needs to be strong and needs to give an a xed number. CPI review or 3% review is reasonable due to the current offers to other tenants. You are paying about $900/m2. It is very high according to our research. We would inform the manager how much others are paying.

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Lease Pro Report

Your secret weapon to negotiate the lease you want!

www.leaseproreport.com

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Lease Pro Report Top 10 Leasing Tips

1. Research is Mandatory
Regardless of any negotiations you enter into research is required to establish the outcomes you need to achieve. In retail tenancy leasing research is needed on your industry, your business, the shopping centre, the Landlord and the current market.

2. Leverage Time
Every lease has two common elements, a commencement date and more importantly an expiry date. Time can be your enemy or your friend. Make a conscious decision to leverage your negotiations. In most cases this means starting the process early. Dont be the one waiting for the Landlord to contact you, by then its too late.

3. Benchmark Real Estate Performance

Make it your business to know how the real estate you lease performs for your business not how you perform for the real estate (landlord). Know your occupancy cost percentage and sales per square meter ratios and how these compare to industry benchmarks.

4. Know your Lessor

Before any negotiation, know who you are dealing with, their structure, and their capacity to make decisions, the process/reporting they need to make to have a deal approved. Remember always that the nice Leasing Executive who buys you a coffee is employed by the Lessor to increase their business returns.

5. Know the Shopping Centre

Just like having your own product knowledge, details about the Lessors product the shopping centre are vital. Know what the majors turnover, the sales of the centre, and the number of customers. Find out how these compare to other similar shopping centres, because the Landlord is comparing your business against a wide range of others.

ABCDE Jeweller Lease Pro Report

Lease Pro Report

Your secret weapon to negotiate the lease you want!

www.leaseproreport.com

6. Know your capital costs

Before you look at any new lease, renewal, or option have a clear and concise knowledge of your tout/refurbishment costs. How long you need to amortise these comfortably and make these known within the negotiations, your lease needs to reect achieving these Key Performance Indicators as well.

7. Lease term to exceed amortisation

Following on from tip number 6, the lease term should always exceed the amortisation of capital period. For example if your capital is a facility over say 5 years then your lease needs to be over 6-7 years.

8. Make meeting le notes

At each lease negotiations meeting, phone call, e-mail make notes. Keep a le in date order that is easy to reference. After each meeting conrm your understanding of the points back to those you meet or call. Continue after the lease has been entered into to maintain this le and continue with your notes you never know when you will need to rely on these to protect your position.

9. Create Relationships
Establish positive and regular communication and professional relationships with Landlords, Agents, Centre Mangers, even the Cleaners. You dont have to like them but you are in business with them, much easier to raise a problem from within a positive relationship. Remember Landlords keep le notes too and have long memories.

10. Get Advice

Dont go into lease negotiation without getting advice not from friends or family, but from people who know. Source advice from Industry Associations, Retailer Groups, Other Retailers, Franchisors, Government, Industry Experts, Retailer Advocates. Dont be afraid to ask even what may seem like the simplest of questions get it wrong and it can cost you for a long time.

ABCDE Jeweller Lease Pro Report

Lease Pro Report

Your secret weapon to negotiate the lease you want!

www.leaseproreport.com

ABCDE Jeweller Lease Pro Report