Landlords and commercial tenants face off over online sales

Discussion in 'Commercial Property' started by Rugrat, 20th Mar, 2021.

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  1. Rugrat

    Rugrat Well-Known Member

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    Rugrat, 20th Mar, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If I was a tenant I would not agree to that. You are renting the property not agreeing to some sort of profit share. Actually it's not even profit share but a revenue tax
     
    Terry_w, 20th Mar, 2021
    #2
  3. jaybean

    jaybean Well-Known Member

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    This is the stupidest thing ever
     
    jaybean, 20th Mar, 2021
    #3
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Total BS and should be excluded from leases. Website sales are not transactions which relates to a particular shop or retail premises but to the business which may be registered elsewhere, supplying out of their warehouse and making product available from the outlet (for pickup).

    Retail Lessors aren't going to drop rents as they have set base rents on what their 'markets' dictate. Online sales are too difficult to monitor from a LL perspective as they can occur from anywhere and not at the retail premises.
     
    Scott No Mates, 20th Mar, 2021
    #4
  5. skater

    skater Well-Known Member

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    This is just a play by the big shopping centres that want to get their hands on sales that are made online, in the same way that they get a cut from sales made in store. Wrong on so many levels. There would have to be a way that online sales be invisible to whatever the LL uses to capture sales made in store.
     
    skater, 20th Mar, 2021
    #5
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    The LL gets a copy of audited sales reports - tenants should be recording online sales in a separate entity where possible or attributed to a different location.
     
    Scott No Mates, 20th Mar, 2021
    #6
  7. skater

    skater Well-Known Member

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    Well, that's what I would do.
     
    skater, 21st Mar, 2021
    #7
  8. Just_A_Name

    Just_A_Name Well-Known Member

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    It is likely a lawyer idea. They could benefit from either way.
     
    Just_A_Name, 21st Mar, 2021
    #8