Heads up...
- Thread starter John_
- Start date
....so what ??
They might up stumps and leave but it doesn't affect the cashflow for the Landlord.
Maybe that is true, and maybe Coles will pull out....once again....so what ??
It won't affect the terms of the lease, nor their obligation to keep paying the rent and outgoings for their full term.
I'd be over the moon if I was their Landlord and they pulled out. Guaranteed rent and outgoings continued to be paid on your building, with minimal wear and tear. They'd still have to perform all of the maintenance, plus do a huge big "make good" before they left.....and all the while you can advertise for new Tenants at your leisure.
If you have to discount the rent to get someone in early if you panic, then you just sue Coles for the difference.
Sounds like a winner to me.
Or you can always negotiate an early payout deal.
just read that woolies property is in a share trading halt for fundraising.
who wants to buy discount CIP ala Centro?
who wants to buy discount CIP ala Centro?
The warehouses are big John, but then so are the terms on these leases.
Coles doesn't go around signing little 6 month terms.
They usually take 15 years plus 10 plus 10 plus 10.
Imagine if you were the Landlord and they moved into your warehouse 11 years ago. When they signed the Lease, their corporate plan didn't extend beyond 10 years, so they had no idea that they were going to move.
Sure, they aren't going to exercise any of their options, but you still get your rent and outgoings paid for the next 4 years, all the while, able to advertise and look for a new Tenant.
If your concern is for the poor Landlord who has 4 years of fully paid notice, then your corporate conscience is admirable indeed. Landlords who own facilities big enough to house a Coles distribution centre don't need your sympathies. They are big enough and ugly enough to handle their own affairs.
Your concern though is very touching.
Coles doesn't go around signing little 6 month terms.
They usually take 15 years plus 10 plus 10 plus 10.
Imagine if you were the Landlord and they moved into your warehouse 11 years ago. When they signed the Lease, their corporate plan didn't extend beyond 10 years, so they had no idea that they were going to move.
Sure, they aren't going to exercise any of their options, but you still get your rent and outgoings paid for the next 4 years, all the while, able to advertise and look for a new Tenant.
If your concern is for the poor Landlord who has 4 years of fully paid notice, then your corporate conscience is admirable indeed. Landlords who own facilities big enough to house a Coles distribution centre don't need your sympathies. They are big enough and ugly enough to handle their own affairs.
Your concern though is very touching.
^^^ Agree
In the end, you get the fantastic rates and long leases for the large light industrial/commercial sites because of the risks.
Vacancy periods are a risk.
PS Dazz: Love the by line
I agree that anyone who owns a Coles distribution centre is big enough and ugly enough to look after themselves.
The reminder that CBA and other banks do sell their bad branches at inflated rentals and prices is worth putting up here IMO because they are within the price range of private investors that may visit here.
I agree it is caveat emptor but it is good karma to remind others that big corporations are not your friend
The reminder that CBA and other banks do sell their bad branches at inflated rentals and prices is worth putting up here IMO because they are within the price range of private investors that may visit here.
I agree it is caveat emptor but it is good karma to remind others that big corporations are not your friend
It is actually a good warning as most people who look to buy these kind of office/retail properties (For CBA branches) pay top yields for it. Certainly down here in Victoria, bank buildings go for 4% yields which is just ridiculous as your capital growth is topped out with only downside risk of the bank closing its doors.
This is concerning, an reflection of our economic outlook
Id put it down to an absolutely normal drive for efficiency
ta
rolf
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