This is a continuation of Part 1: Response to “Property consultants point to snag in fair tenancy framework recommendations”. I want to allay Ms. Christine Li’s concern that the fair tenancy framework recommendations may not allow landlords to respond swiftly to structural changes such as the rise of e-commerce. The FTFIC’s recommendations are designed precisely […]
Category: Rent
Buy-Online, Pick-Up-In-Store Turns Into Sell-Online, Pay-Rent-In-Store.
A landlord went on a mountain retreat to contemplate the meaning of omnichannel. Om Om Om Om. Suddenly, she had an aha! moment: Why don’t I charge tenants turnover rent for those Buy-Online, Pick-Up-In-Store transactions? Brilliant! So I speak. And so it is. Though the story may not be true, there is a growing trend […]
Setting Sales Target Using Store’s Occupancy Cost
For the past nine years since 2011, we have been using occupancy cost to determine a store’s sales target. If a store achieves the sales target in a particular month, every team member of that store will receive a sales incentive that month in addition to his or her base salary and sales commission. Occupancy […]
How Turnover Rent Killed Black Friday
It is common for retailers to make around 40% of our turnover in the last quarter of the year. For 3/4 of a year, we retailers try very hard to ride out the offseason and stay afloat. Black Friday, the day after Thanksgiving, perfectly describes this reality: it was the day when retailers went from […]
What Is Gross Turnover (GTO) Rent?
If you are venturing into retail and looking to rent a premise in a shopping mall, you are likely to come across an offer from the landlord that looks something like this: $20.00 psf/month + 1% OR 11% of Gross Turnover, whichever is higher The + 1% or 11% of Gross Turnover is commonly referred […]