PARTIES/LEGAL REPRESENTATION/ TYPE OF DISPUTE The inquiry was with regard to the selling price of…
Submission to determining-valuer
PARTIES/LEGAL REPRESENTATION/ TYPE OF DISPUTE
Tenant legally represented.
INSTRUCTION: Prepare submission to determining valuer for Tenant.
DESCRIPTION OF DISPUTE
Tenant paying $145,000. Landlord sought $220,000 + on exercise of option but was willing to “settle” at $195,000
There was no evidence exceeding $110,000 under the permitted use, nor would financiers support business finance at more than 6% occupancy cost for highly specific permitted use
How it was settled
An agency based valuer determined the current market rent at almost 8.5% of turnover
This is an example of “rent control” upheld by the Queensland Government, noting agency fees being percentage of rent collected
The consumer is paying higher prices and, although the business is managed to above average standards, it cannot compete in a highly competitive trading area.
The business will lose market share. The behaviour must change and the Queensland Government must support the experts it appoints
