Quote:
Originally Posted by Hack&Lube
Given that most restaurant leases are for 5 to 10 years, many of which were set during the crazy years, a lot of people are locked into terrible lease rates and getting out via an exit clause or bankruptcy may be the only way.
This is a bit of a market correction just like what you see with O&G. The lease rates for commercial retail tenants need to drop in this town to support some vibrant businesses. The big tenants and office towers have all dropped their rates significantly as we are looking at something like 25% vacancy but the retail and small side of commercial is still jacked up.
Mom & Pop shops are more desperate to make money, with little to fall back on, and landlords are exploiting that.
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Agreed. Landlords need to understand they can take either less $$$ for their space or they can take zero. The place I work falls under the small commercial scale I guess. Our space downtown is up for renewal (we used to take about one floor but are now probably closer to 1/2 s floor in our building). Landlord isn't budging an inch for the renewal and claims it's business as usual in Calgary and there is no downturn in the market.
