SHOPS IN DEMAND

New Zealand Herald, Volume LXXIV, Issue 22822, 1 September 1937, Page 12

SHOPS IN DEMAND

ACUTE CITY SHORTAGE WIDESPREAD INQUIRIES PREMIUMS FOR LEASES RISING TREND OF RENTS So acute is the shortage of shops s in Queen Street and Karangahape Fioid at present that a number of cases are reported in which firms and syndicates desiring space have offered existing tenants substantial premiums to vacate the premises in their favour. Up to £2OOO has been paid to lessees willing to relinquish their premises and having from five to eight years of their lease to run.

"The only way to get a shop in Queen Street or Karangahape Road is either to purchase property outright or to pursuade a lessee to vacate his premises for a premium," a land agent said yesterday. For space in the busier portions of these thoroughfares there was a demand, not only locally, but from the South and from Australia, that could not be met, he added. A good inquiry also existed for shopping \ space in Upper Svmonds Street and in Broadway. Newmarket. Subdivision of Premises In spite of the demand, however, there was little tendency for these desirable areas to expand, inquirers apparently preferring to wait their opportunity to secure central premises rather than establish themselves in other localities. A possible exception was Customs Street East, where a considerable expansion from Queen Street had occurred in the past two years. The subdivision of premises in Queen. Street and Karangahape "Road had assisted, to a small extent, in meeting the inquiry for space, but it was pointed out that comparatively few buildings which could be subdivided now remained. Shops Off Main Streets The fact that shops in streets adjacent to the central thoroughfares had become fully tenanted in the past two years was not considered to have relieved the situation to any degree for these businesses were of such a nature that they would not, in any event, compete for space in Queen Street or Karangahape Road. The tendency of shop rents to harden thoroughout the city generally was commented upon by several agents yesterday. "If any shop becomes vacant the landlord has little difficulty in ob- . taining 4 a higher rental," said one man. "Because the overhead costs of most city buildings have increased materially he must, of necessity, endeavour to improve his position." This also applied to offices in modern buildings for which there was a strong inquiry.