Flexible friends help Tracy take off with Tea and Bisque-it

26/07/2012

Flexibility with finance and other features of property deals are helping to get the market moving, according to Paul White of Garness Jones.

The retail and leisure specialist at the practice, Paul says landlords and tenants are working in partnership to get empty units back into use.

That level of co-operation is in turn being supported by Garness Jones, who are taking a more imaginative approach to try and get deals done.

Among the retailers to have benefited from the flexibility is Tracy Holland, who opened Tea and Bisque-it at Kingston Road, Willerby, in mid May.

Business is booming at the pottery studio and cafe, but Tracy admits she wouldn’t have been able to take the premises without a change to the original terms.

Tracy said: “I didn’t want to commit to five years because I really didn’t know how things would go.

“But we agreed a break clause after two years and the landlord was also flexible with the rent. It made all the difference. These are great premises, ideal for what I need, but it wouldn’t have happened without those changes.”

Paul White said the new climate of co-operation marks a change from the “take it or leave it” attitude of the past, and he revealed that of the 44 transactions he has completed in the retail and leisure sector in the last six months 30 have been for start-up businesses, with expansion accounting for the remainder.

He said: “There are still people who are reluctant to relax the rent and the lease terms but we have found we can do some more flexible and more imaginative deals.

“There are some landlords who will reduce the rent initially if a tenant is taking a longer term lease. That enables the tenant to build up a business reputation which will help them in the future.

“We are experienced enough to know if a prospective tenant has a good business idea and whether the premises are suitable, and landlords who have a good knowledge of the market tend to know what sort of businesses will work well.

“We are realistic with landlords and tenants about what we can achieve but we know the landlords want the tenants to prosper and we can help to build that relationship.”

Ian Loncaster, landlord of the premises in which Tea and Bisque-it is housed, said it was an example of the parties agreeing a deal which worked for all concerned.

He added: “There is a need for landlords in the commercial market to accept that the market has changed from the buoyant conditions of 2006 and to adopt a more flexible and realistic approach.

“It is not all about reducing the asking rent but about identifying the important needs of the tenant and working with them to help in creating conditions which give their business a greater chance of success.

“This might involve providing more flexible lease terms, giving a stepped increase in rent, a rent-free period or even capital expenditure on the building in exchange for an enhanced above-market rent and long-term lease commitment.

“The more substantial the tenant, the more flexible we as landlords are able to be, but the right attitude to work with us helps.

“Some properties, particularly prime units, have not shown a reduction and tenants must also accept this but there is generally a more understanding attitude by the more enlightened landlords to get their vacant units occupied.”