Lease conditions / lease terms:
Early in 7.0 year lease. Poor representation by “lease negotiator” who stitched up Tenant; followed by business disruption in shopping centre;
Gross rent paid:
Circa $160,000 pa 12.0% of turnover;
Ran software modelling: used industry benchmarks; similar premises supported gross rents of $90,000;
Potential “claim” averted for business disruption; gross rent reduced to $125,000 or thereabouts
Inflated rents may significantly inflate the value of any property. Prior to acquiring a property, test the veracity of the leases and rent levels.