Leases
Permitted Uses Can Limit Sales
Permitted uses under the provisions of at least limit the uses to which attending can use a property it is leasing. Certainly, there are local authority planning provisions that need to be considered. However, product diversity is the key to ensuring a tenant business doesn’t become too dependent on a single product or products.
Times change show does demand. What is in demand ‘today’ may not be in demand ‘tomorrow’. If tenant business unable to add/change the products it offers for sale through restrictions imposed by the ‘permitted use’ provisions in its lease may see its profit levels threatened. Business value and salability implications follow. Tenant business owners would be well advised to consider ‘permitted use’ restrictions in their leases before entering into them.
Need more information, talk to me.
Graham Long
Kevin Lovewell
M: 0401 308 385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers
Graham Long
M: 0428 649 791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers
