Registered Valuers. Registered Property Consultants. LINZ Accredited. Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998. Valuation litigation and commercial property specialists. Development and public land specialists.
Massive bounceback in retail spending …
“After seven weeks of being closed to the public, Hawke’s Bay retailers say the bounceback in in-store attitudes around the region have been “like Christmas” since the country entered level 2 …”
Turley & Co was a turnover rent leases commentator (NZH Premium subscriber access):
Hawke’s Bay Today: “Turley & Co property strategist and valuer Pat Turley said in the UK there has been talk recently about retail turnover leases being an answer to a high street’s retail quagmire.
Turley said turnover leases occasionally apply for hospitality tenancies in NZ, for Hawke’s Bay supermarkets and regional trade retail stores.
Rent additional to a base rent is triggered by retail sales over a certain level.
He said there are pros and cons and “if the retail sales performance necessary to trigger additional rent is set too high, landlords would unlikely agree.”
Turley also points out that “a certain rent level is needed to support retail property investment and for town centres to prosper.”
He says the model has potential though as a “shared pain and shared gain retail lease basis in Hawke’s Bay.”
Refer to our related news posts UK Retail Property Catastrophe Spurs Turnover Leases Talk and Turley & Co Retail Focus Report