The retailer agency section within GCL is headed up by Neil Grice who has some 25 of years experience. Originally a high street and shopping centre leasing and acquisition agent, Neil moved specifically into travel and destination retail six years ago.
Neil has been one of the main advocates of moving away from more traditional, Zone A, and rate per sq ft, ways of letting property as this has a number of drawbacks, including:
- Not matching rent to tenants' ability to pay
- Dependant on uncertain rent reviews for growth
- No growth for five years with traditional rent reviews
- Can lead to retailers paying too much rent or not enough, both of which cause problems
- Doesn't allow for changes in market conditions
In the travel and destination market and for more unusual properties, the ability to work with the tenant to agree a turnover figure and derive a rent from that is far more beneficial to both parties and has the following advantages:
- The tenant should always be paying a rent that is the maximum affordable rent for that particular unit
- Intervention by the landlord to encourage growth leads directly to increased rent
- Landlords are encouraged and also rewarded by investing in the site because of the turnover rent mechanism
- Base rents should move up annually
- Tenants are far more able to deal with the varieties of the market
- Reduced vacancy rates
GCL's Message:
Whether you are a landlord or a tenant, the need to ensure that the rent follows the tenants' turnover and the ability to pay, leads to far more accurate rents being paid on properties. This creates a true partnership between landlord and tenant with both parties benefitting.
In addition, GCL believe we have a very good understanding of the food and beverage, travel and destination, drive-thru and convenience, and at-hand retail markets better than anyone else's. GCL can also advise on likely levels of turnover and therefore rent achievable for landlords, and can work with tenants to ensure that trading from any particular unit within our sectors is optimised.
