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Landlord’s
Perspective
The concept opens up the possibility for the landlord
of earning high rental income in respect of currently
unoccupied prime retail space. Alternatively,
existing non-earning features such as planters,
fountains, exhibition stands and similar structures
can be replaced with a retail unit. The tenant
is usually asked to fund the cost of the Proteus
unit against an offset of a corresponding rent
free period. Thus the landlord does not need to
incur any capital cost either up-front or subsequently,
other than the provision of services to the unit.
In the normal way, ownership of the unit would
be vested in the landlord.
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Tie
Rack in
a Proteus
retail unit
at London's
Waterloo
Station.
Move your
mouse over
this picture
to see what
was there
before |
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Retailer’s
Perspective
Retailers acquire the exciting opportunity of
occupying a high tech and attractive unit in a
previously unavailable prime location. Although
they will usually be required to fund the initial
cost of the unit, this can, as already stated,
be off-set by a suitable rent free period. Furthermore,
the retailer avoids the normal liabilities associated
with acquiring commercial property by being able
to negotiate shorter leases, in most cases on
a turnover related basis, dispense with schedules
of dilapidations and benefit from low shopfitting
costs due to the free-standing nature of the fittings
and the flexibility of being able to remove these
if desired.
The Open Space Deal in Summary
If financial circumstances dictate, the landlord
can acquire a new retail unit at nil cost. The
tenant funds the purchase with the cost being
offset against a corresponding rent free period.
A remarkably painless solution! |
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