How A Council Could Halve Your Building's Value Overnight
An election policy announced on Sunday would change how commercial leases work in New Zealand. Two parts. Rent reviews on leases already signed could go down, not just up. And if a CBD shop's been empty for more than a year, the council could give the landlord 8 weeks to find a tenant, then auction off a lease on the building.
My area is residential, so I asked someone who works with commercial leases every day. My son Alex is a commercial broker at James Group Real Estate in Auckland. We go through what a ratchet clause actually is, why banks want one, how a commercial building gets valued…
The skinny
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