Retail Butcher major A-REIT

Lease conditions / lease terms:

New 5.0 year lease;

Gross rent offered:

Small increase to circa $92,500 pa;
Ran software modelling: used industry benchmarks; similar premises supported gross rents of $70,000;

Outcome:

New lease finalised and settled for $75,000

Comments:

Inflated rents may significantly inflate the value of any property. Prior to acquiring a property, test the veracity of the leases and rent levels.