Retail Pharmacy

Parties:

Family owned business and landlord; long-term relationship will be 20 or so years by lease end

Lease conditions / lease terms:

Retrospective mid-term review for 10 year lease back-dated to 2014;

Gross rent:

As at 2017 was $125,000 pa;
Ran software modelling: used industry benchmarks; similar premises mainly in proximate area which supported circa $60,000 gross;

Outcome:

Rent determined back to 2014 at $67,000.

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.