QUOTE(charlieboy61 @ Dec 25 2012, 10:38 PM)
But tenants need to get goood returns and have good business. Otherwise they cant pay the high rental which is good returns to the owners.
Original owners can pocket their high returns now or if they still have risk appetite, stay on. Based on current market prices, rental yield alone is no longer a good return to owners. That is why many shops are changing hands. On top of the rental, many tenants have spent hundreds of thousands more to renovate in order to attract the right customers. Ultimately prices/reality/services/etc will determine the businesses that can successfully operate at SW. Rental rates at prime shoping malls are about five times higher but for example, may not be suitable for pubs and bars. Calculated risk taking and business abilities are what seperate a true successful businessman from the others.
Added on December 26, 2012, 9:55 amQUOTE(charlieboy61 @ Dec 25 2012, 10:38 PM)
But tenants need to get goood returns and have good business. Otherwise they cant pay the high rental which is good returns to the owners.
Original owners can pocket their high returns now or if they still have risk appetite, stay on. Based on current market prices, rental yield alone is no longer a good return to owners. That is why many shops are changing hands. On top of the rental, many tenants have spent hundreds of thousands more to renovate in order to attract the right customers. Ultimately prices/reality/services/etc will determine the businesses that can successfully operate at SW. Rental rates at prime shoping malls are about five times higher but for example, may not be suitable for pubs and bars. Calculated risk taking and business abilities are what seperate a true successful businessman from the others.
Added on December 26, 2012, 9:55 amQUOTE(charlieboy61 @ Dec 25 2012, 10:38 PM)
But tenants need to get goood returns and have good business. Otherwise they cant pay the high rental which is good returns to the owners.
Original owners can pocket their high returns now or if they still have risk appetite, stay on. Based on current market prices, rental yield alone is no longer a good return to owners. That is why many shops are changing hands. On top of the rental, many tenants have spent hundreds of thousands more to renovate in order to attract the right customers. Ultimately prices/reality/services/etc will determine the businesses that can successfully operate at SW. Rental rates at prime shoping malls are about five times higher but for example, may not be suitable for pubs and bars. Calculated risk taking and business abilities are what seperate a true successful businessman from the others.
Added on December 26, 2012, 9:55 amQUOTE(charlieboy61 @ Dec 25 2012, 10:38 PM)
But tenants need to get goood returns and have good business. Otherwise they cant pay the high rental which is good returns to the owners.
Original owners can pocket their high returns now or if they still have risk appetite, stay on. Based on current market prices, rental yield alone is no longer a good return to owners. That is why many shops are changing hands. On top of the rental, many tenants have spent hundreds of thousands more to renovate in order to attract the right customers. Ultimately prices/reality/services/etc will determine the businesses that can successfully operate at SW. Rental rates at prime shoping malls are about five times higher but for example, may not be suitable for pubs and bars. Calculated risk taking and business abilities are what seperate a true successful businessman from the others.
This post has been edited by a123: Dec 26 2012, 09:55 AM