RETAIL LEASE CHANGES

Inflation has increased to 7.3 per cent and landlords want a corresponding rise in rent, but all retailers see is the cost of their products rising while they are still making the same margins.

Although inflation is the highest since 1990, it is still relatively modest when compared with the tumultuous 1980s when inflation hit 17.6 per cent, but it means lease agreements are having to be restructured, says Bayleys national director retail, Chris Beasleigh.

“Rents can't keep going up as a percentage of turnover in the existing high inflationary environment. Hopefully, inflation is just spiking but nobody knows how long it will last.”