The Office of State Revenue has just sent out the Land Tax 2017 assessments.
This is a major impact to retailers who are paying a net rent as part of their outgoings on long leases.
The increase is some regional areas is up to 30% higher than the previous year.
For those on a Gross Rent lease this impact on rents and the investment returns for the landlord investors.
The ongoing stress on retailers margin continues to affect the economy and has slowed growth.
Why has this occurred?
In the past few years each council changed their Local Environmental Plan(LEP) under State Government push to increase densities around railway stations and infrastructure coupled with the increase of the development market in Sydney. The suburban strip shopping areas where the new LEP’s have had changes to Zoning and increased Floor Space Ratio (FSR) have resulted in the Gross Floor Area (GFR) of the property increasing and subsequently the rate per sqm of value has increased which has resulted in the pressure on these local retail premises increasing in thir Land Values.
A good property Asset Manager is able to help the landlord and tenant negotiate and manage the position for the benefit of both parties.
This is where we can help so if you need advice call our expert Bill Aslanidis on 0418 294 058.