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I don’t know if anyone can help with this question
My friend in the beauty services industry went out on her own 3 ½ years ago –as she was quite young and to minimise risk she signed a 5 year lease, located in suburban block of shops with no traffic exposure. Unfortunate that she was so sensible and humble, as her business immediately took off and she’s long outgrown the small premises – to the point where has had to remove her business’ phone number from the website and social media as she has not had any capacity to accept new clients or the room to employee additional people that would enable her to take on these new clients. So the natural growth of her business has been completely stunted.
She went to her landlord a while ago with someone willing to move in and take over her lease and buy her entire office fitout, and the Landlord refused with reasons such as “You are a good tenant and we like you, why would we risk putting someone else in there when you’re locked in for another two years? You’re not going anywhere I’m afraid”
It wasn’t stated to her at the time, but she has also subsequently been told by the landlord that the popularity of her shop has been the sole reason for other tenants in the block moving in.
Does she have any options here?
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This question begins and ends with the terms of her lease. What does it say? It’s a legal contract and she is bound by its conditions.
However, if she is so valuable to the property, the landlord needs to start thinking long term, rather than take it or leave it.
Perhaps the landlord could offer her another larger property within the complex – or a satellite space.
Failing that, I’d be tempted to talk about sub-letting or expanding the business to include a tattoo parlour and “dope” shop while moving the core business elsewhere.
Maybe that would focus the landlord’s thinking.
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