THIS WEEK’S TOPIC: How might the Fair Tenancy Framework be tweaked to better reflect the interests of both tenants and landlords? What’s needed for the retail industry to remain viable?
Tenants would definitely want a lower fixed-base and a higher variable pegged to the business turnover while landlords would naturally want the opposite. Although the current framework may seem to favour landlords compared to tenants, it is important to note that landlords have expenses and commitments as well. When the economy isn’t robust, the chain reaction hits everyone because landlords depend on tenants to pay while tenants rely on footfall and customers for sales.
There are two things the retail industry must look at to remain viable. Firstly, a more robust customer experience so that customers return again and again. Secondly, the development of an e-commerce arm to cushion the lack of sales from physical outlets. When more retailers embrace e-commerce and rely less on physical shopfronts, the dynamics of having more units on the supply side would naturally bring rents down as well.
To view my thoughts on Business Times, visit this link: https://www.linkedin.com/pulse/teamwork-innovation-vital-mario-singh/
