Some very painful lessons about to be doled out to owners poorly advised by real estate agents and commercial agents.
Totally correct.
I feel that I can contribute a view from both sides - I own a commercial property, and also have an investment, with some family members in a business which leases a shop from one of the major mall owners.
I should say - maul owners. Because they sure do maul a business. We won't be going on with it, we are preparing to take the losses and wrap it up. It is profitable service business, but income has been flat, while rents keep rising. These rents are massive, in the first place.
I don't treat my tenants that way. If they can establish a business in our little corner building, then we back them all the way. Rents are reasonable, and people are invited for a long term commitment in fitting out the shops. Rents are only revised upwards when business picks up. That has not been so, recently, so we just chug on at existing levels. Like this, there are stable tenants, and good customers - and a full building. That is most important.
It is not necessarily internet shopping which is damaging shops, it is greedy commercial leases.
