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High commercial rents on SGR?

vergaverga
in Local discussion
<p class="MsoNormal">Can anyone help me understand the economics on this?<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">There was hearsay that Ajani couldn’t afford SGR because of the high rents.<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">What I don’t understand then is how come the new butcher/fish shop can afford it?  There are two halal butchers further down SGR so it isn’t as if it is a unique proposition<o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Furthermore, how can a shop like Beacon Books survive?  <o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">How can those other shops down that end that are empty remain empty?  There must be at least half a dozen empty commercial premises on SGR at the moment <o:p></o:p></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal">Are the laws of supply and demand not working here?<o:p></o:p></p>
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  • south_to_northsouth_to_north
    <p>I also wonder about this. If rents are so high how come places like Oven and Hearth are still in business? Not to dismiss them or anything but I rarely see more than two people in there.....</p>
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  • maclondonmaclondon
    For longstanding places like Beacon Books they tend to have long term deals which protect them for a period of time until there is a rent review which is when businesses have to make a choice about staying or going. Sometimes even when the prices are high, some hang on like Oven and Hearth. The real issue is that landlords tend not to be interested in the long term success of their tenants which is a shame - it would be great if more adjusted their rents to how well a business is doing in terms of sales.
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  • vergaverga
    So putting rents up when they are doing well?  Bigger corporate landlords, i.e. in shopping centres, tend to charge a portion/all of rent based on turnover/sales<div><br></div><div>My understanding is that rent reviews would generally be every 5 years which is a long time, but still not necessarily enough to make a difference.  Also, I think that rent reviews are often linked to a price index - though again a lot of property deals are contracted outside of legislation.</div>
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  • MirandolaMirandola
    Beacon books own the freehold of their building.
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  • miss anniemiss annie
    Probably the case with the longstanding people like Fish & Cook stationers and the Amazing Hardware Shop of Joy  on Blackstock Rd too.
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  • gardener-joegardener-joe
    edited January 2018
    ...
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  • miss anniemiss annie
    edited April 2016
    It's my second favourite shop in the area, after Stroud Green Fruit & Veg & Wholefoods (Ash's). Third, Fish & Cook. I like shops that can tell you about what they sell and talk to you about how to use it, and sell useful things without fleecing the customer.
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