As the go-to specialists in business printing for over 120 years, SNAP provides an end-to-end printing service, with the ability to implement every aspect of printing requirements, from the initial brief and graphic design through to printing and the finishing touches.
Franklin Shanks work closely with Snap on their property portfolio, and in this instance were engaged to secure a critical renewal for their largest CBD print centre nationwide.
Key Challenges
Renewing in the midst of Covid recovery in early 2022, Snap were faced with uncertainty about whether a renewal would be offered by landlord. Franklin Shanks worked directly with the Landlord’s representative and the Franchisee to ensure all parties were assured and confident in making a commitment of a new 7 year term.
A further challenge presented in the commercial terms, which were offered at a materially higher rate than the previous term, and compounded by aligning with the natural end of a two year covid rent waiver/deferral period.
Outcome
Franklin Shanks provided a stay-go analysis, benchmarking the rent and incentives, and conducting a financial review of the offer against feasible alternative options. The best option was to renew the lease, due to complexities in relocating machinery; however, benchmarking showed that whilst face rent was aligned with the market, effective rent was out of step due to soaring incentives in CBD markets throughout 2021-22.
A market rate incentive was then successfully negotiated, incorporating clearing remaining covid deferral payments, and providing a significant abatement period. This allowed the franchisee to ease back to the face rent value in line with their covid recovery trajectory.
“My advice to any business with property leases not just high-risk ones: When it comes to portfolio security and ensuring you are receiving the maximum benefits, engage the experts and call Franklin Shanks.” – Glenn Jarrett, CEO Snap Franchising
If you would like to speak to Jaymie Rowland about your upcoming lease negotiations, reach out directly on +61 405 342 598 or [email protected]