In singapore, the trend is - for service products, to ask for a % of the takings - unlike for goods sales - GENERALLY !!!olivergm wrote:Not food related. It's a small fitness/health type studio in your regular 3 story shopping mall. 3yr least and asking for a 3%...
In theory, yes. In Reality, with a booming property market - most owners don't give a about it - that's from experiencefarnho wrote:Pros & cons: generally landlord would be more keen to help you boost revenues as they have a share and you may be able to nego lower fixed rent for higher % share of revenue.
Actually some landlords are exactly as you said. my neighbor office room is about 2 years, still not rent out. why? his office located at the edge of corridor with a staircase inside. it is very difficult to utilize space due to irregular shape of room. Previous tenant(Wellness related) gave her a good price but only one year terminated. no customer! but landlord still want higher rental than previous tenant because she think all the property price grow why not her? you can imagine it, still not rent out after some time i passed there, already two years now!ecureilx wrote:In theory, yes. In Reality, with a booming property market - most owners don't give a about it - that's from experiencefarnho wrote:Pros & cons: generally landlord would be more keen to help you boost revenues as they have a share and you may be able to nego lower fixed rent for higher % share of revenue.
Singapore is yet to see owners run co-ordinated marketing campaigns - most are just ad-hoc on the fly jobs, and for which all tenants are fleeced and the returns are not great ..
Some landlords are even into 'ancillary' services - so much so, even banners / name boards, even business cards must be approved and purchased from their 'preferred' supplier, who's price is more than double of market rate - extra posters in-house too are not allowed - apparently to the policy of not creating eye-sores ..
All because the landlords dictate terms .. Rarely the tenants fix their terms ..
And a couple of friends, who run service outlets, are forced to close existing outlets and open new outlets in new locations almost every two years - simply - when the market goes up - landlords jacks up the price, sometimes by upto 300% .. and one of the outlets - which had been residing for 8 years, with contractual 10% increase per year - had no mercy from a landlord - who insisted on revising the rental by 100% and when the tenant packed up, the landlord left the place closed for upto 6 months as his bets failed, and then meekly rented out the place to another tenant for less than half of what the previous tenant was renting it ..
in my eyes, most landlord are hardcore gamblers or it is OPM (other people money) so profit is #1 priority and all else come last ..
So there you go
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