Table turns on developers as tenants demand less rent
SEE ALSO :Recipe for success of housing dream“Rental income has come slightly under pressure due to temporary increase in vacancies coupled with some tenants bargaining for reduced rentals upon renewal of leases,” Stanlib said. “The reduction of rental income was partly offset by one month contribution of rental income by the newly acquired property,” Stanlib said. Discounted rates Last year, Tenants at the Point-Mall in Buru Buru vowed to close their shops for two days to protest high rents as businesses struggle in lean times. Realtors are already being squeezed by new tenants who are asking for discounted rates, reduced service charge against a demand to scrap goodwill, hire interior designers to spruce up the buildings, set up indoor entertainment spots and offer freebies.
SEE ALSO :Bathroom storage ideasThe developers and their realtors argue that they cannot reduce prices since they incur additional costs of marketing and support infrastructure which they do not pass on to their tenants. For instance, Stanlib, the only listed Real Estate trust is now constructing a 3-screen cinema with 100 seats each at Greenspan Mall that will be complete in December to increase foot traffic in order to boost existing tenant customers and increase rental incomes.