05/08/14 The "New Normal"
In order to lease-up the growing number of vacant retail spaces in downtown Kingston, landlords may need to demonstrate flexibility in their net rental rates.
In a recently closed transaction for a downtown retail space (below Montreal Street) - a renovated historic building in excellent condition, with exposed limestone/brick, and with updated mechanical/electrical - DTZ assisted the landlord in leasing the 1,300+/- sf space at an average net rate of $22.50 psf over the term of the lease, $12.45 psf additional rent, 45 days fixturing (gross rent free, tenant to pay utilities only) and 2 additional months net rent free. In 2007, this space was leasing at $30.00 net.
DTZ Broker of Record and President, Peter Kostogiannis, foresees such lower net rental rates becoming the “new normal” for the downtown core.
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