The leasing pendulum is swinging firmly in favour of tenants as landlords cut generous deals to fill pandemic-hit properties in Melbourne’s suburban shopping strips.
Tenants who are able to negotiate or willing to take new spaces are being offered six months incentives, short one-year lease terms, delays on starting leases tied to lockdown lifting, and flexible occupancy conditions.
“We’re advising owners to be as flexible as possible,” said Gray Johnson’s Rory White. “Landlords don’t have much to lose by agreeing to some of these things.”
In April, Mr White negotiated a six-month lease with The Gertrude Grocer, a gourmet and high end food retailer at 188-196 Gertrude Street in Fitzroy, so it could set up and test the market. It took space previously leased to Aunt Maggies.