Traders hit on the double
A LIMERICK businessman has pleaded with landlords to reduce rents on city centre properties to help ease the ‘closed shop’ syndrome.
Meanwhile, a city auctioneer has appealed for a reduction in rates which, he says, allied to a fair reduction in rents, would breathe new life into an ailing city centre.
The businessman, who does not wish to be identified because he is involved in protracted negotiations with his landlord for a rent review, claims that despite traders in rented properties feeling the full impact of the recession, there was little in the way of give on the other side.
“It has been well documented that a lot of business people are scraping the bottom of the barrel for their very existence.
“Just look around you….shutters have come down in most of our principal trading streets, and also, I might add, in our shopping centres, where rents have continued in an upward curve.
“Landlords have to be realistic. Would it not be better both for themselves and our city if they adopted a more realistic approach by reducing rents and having units occupied.
“In my situation, I may have to vacate simply because I cannot afford the sought increase in rent”.
Auctioneer Pat Kearney, former president, Chamber of Commerce, agreed that while high rents posed a problem for many retailers, the reality was that in some instances they had remained firm over a 15 year period.
He cited one available unit which was let for 20,000 punts (€25,394) per annum in 1995.
“In 2010 we are seeking €20,000 for the same premises, a substantial enough drop, more so considering inflation.
“On the other side of the coin, through, rates for the same shop 15 years ago amounted to 73 punts (€92.69) per week, now the charge is €149.
“We have 520 sq.ft. shop on the market at €12,000 per annum, but the rates are crippling, at €5,346 a year, or over €100 per week”.
This was an issue, Mr Kearny argued, which needed to be tackled. “Yes, rents can be problematic but the same applies to rates”.
It was sad, he added, to see so many empty units dotting the landscape.
“There should be a reassessment of rateable valuations. A lot of clients we deal with are constantly raising this issue”.
Top priority now, he said, was to put life back into shops that had closed.
“A start could be made in Patrick Street/Rutland Street. NAMA could play its part by reopening some of the old shop units, like Hartmann’s, Clancy’s Electrical, Emerald Alpine, AIB Bank and Renaissance, and making them available at a reasonable rent to those who want to start up in business”.
