I work in a small business that is doing OK, and we need to move, but are confined by needing to stay in a geographically restricted area in suburban Dublin.
We are negotiating a lease, but the developer is holding out for ca x3 what would be the usual commercal lease. ( He knows how badly we need to move)
Currently, the building is unfinished and unoccupied, and we feel it will remain so unless we move in. We think he needs our agreement to lease to finish the property.
We sense he is playing chicken.
Can the banks force the developer to lease out at much less than he wants, just to get some cashflow going?
Will the stress tests affect commercial property values and leases in any way?
Will the sector continue to tank?
Present your case and then walk away.
Would it be viable to split your operation? Keeping the part that is geo-specific in the current location and moving any support roles to nearby, cost effective location?
We are sitting back for now but it means turnng down new business as we are at capacity. With more space, we could earn over and above the new rent, but we do not want to be total suckers and just pay up the asking price.
Splitting the business geographically is not an option for us.
I am very reluctant to pay a " Paddy price" for this. Or would people feel that we are biting our nose to spite our face?
What are the terms of your current lease? How long etc?
If the dev is unfinished, maybe goto his bank and explain he’s not being realistic.
They are only to eager to pressure when they think they are missing out.
3x the going rate is taking the piss. It’s not biting off your nose to spite your face, it’s prudent - once you’re in, and can’t move without cost, what’d stop him charging 5x cause he has you even more over a barrel then?
What kind of unit is it? It’s just I can’t really think of any location, even in suburban South Dublin, that doesn’t have a multitude of free commercial space of all sorts.