- Mar 11, 2010
Wrong. What landlord would 'look at different terms' if they have personal gurantees on upward only rents? Commercial Rents under these terms aren't falling. Tenants first let staff go as it's the only big cost they can affect and then they default. Landlords will go after personal assets rather than take lower rents. The leases can't be sold because who'd buy an UO Lease when all new leases don't have that clause? We effectively have two markets in leases now.So you want the Govt to retrospectively tear up commercial contracts at will.
Nice BUT are you prepared for the consequences ?
A Leaseholder who suffered as a result of this would be quite correct in going to court and would quite likely WIN.
A Commercial contract exists between 2 parties and Govt has no right in retrospectively going back and siding with a single side for NO BENEFIT.
The idea that its Commercial Rents that are holding back SME's and Businesses is bogus as there will be always Leaseholders / Landlords willing to look at different terms.
The govt, with a constitutional amendment if necessary, should void all UO reviews in commercial leases. It would protect businesses, protect employment, encourage activity and investment in the sector and maximise exchequer returns through VAT, Corp Tax, Cap Gains, PAYE and PRSI.
Restricting a free market in commercial rents is damaging the economy.