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ZPPHiU: Risks for industry retail in 2025 year.

ZPPHiU: Zagrożenia dla branży retail w 2025 roku

The trade market in 2025 year is expecting other tensions related to the basic inequality of parties of leases – indicates the Union of Polish Employers Trade and Services (ZPPHiU). Inequality in leasing contracts in trade centers and common

costs are key issues to regulate. How to avoid disputes about rent between owners

and tenants of shopping centers?

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How avoid disputes

about rent between owners and tenants of trade centers?

In the Polish legal system there is no forbidden transfer of all costs of operating by owners of trading centers to traders, who have to claim their judicial disputes – returns attention to ZPPHiU. Minimal is charging smaller entities with the costs of maintaining space to key tenants. Unfortunately happily the courts and more often contest the provisions of contracts allowing similar practices.

The second issue is modernizations. More than half of centers in Poland were constructed before 2010 year and as energy inefficient will require from property owners costly modernization of both thermal installations, as electrical and fire safety. Already now we are observing attempts to transfer to tenants legal obligations of owners of centers. Particularly surprising is the contradiction between declarations of managers of real estate about the reliance on environmental values, and requests for unnecessary replacements of performing elements of infrastructure. This phenomenon increases without doubt in the next months of the current year.

Because of increasing insurance risks may increase the cost of insurance premiums for real estate – a this cost owners of centers standardly transfer to tenants in the so-called service . service charges, without having to negotiate them. Taxes on real estate also do not be paid by their owners.

What measures can reduce the threats that create for tenants of shopping centers? Before any very detailed analysis of lease agreements and negotiation of specifically unsafe provisions.

– risks appear in the market.area financial, that is the currency taken to establish the amount of rent and inflation influencing the amount of common costs. The impact of both of these factors can limit contractually, similar to obligations resulting from imposed on owners centers environmental obligations. Controlling costs at the negotiation stage of contract is one aspect of the future. The other is increasing revenue. Very many tenants are intensively working on increasing the share of e trade in total sales volume, to minimize the risks associated with using positions by landlords. Investments in marketing on the internet, distribution through own stores and through platforms are creating opportunities, which will certainly be exploited in an even greater extent than has been to this time. The retail in Poland is characterized by overproduction of legislation resulting in limited opportunities to change, both in the implementation of EU directives, and national law, being the result of assumptions of  post-business nature. The effect of increasing legal regulation is the increasing divergence between stronger and weaker entities, and increasing costs of performing activities related to increasing energy and labor and complex conditions of performing activities. The complexity of regulations implies the necessity of costly audits and consultations, a such competencies are usually not available in smaller organizations – indicates Zofia Morbiato, director general of the Association of Polish Employers Trade and Services (ZPPHiU).

As a result of requests pressed by landlords in the so-called. green annexes to contracts for leases in commercial centers increase the threat of transferring further costs to owners to tenants. This is another burden usually withoutanyjustification.Frequentlylandlordsrequirethereplacementinshopsofqualityfloors,sitesorinstallation-withoutbenefittotheenvironmentandimportancetocustomerscenters.Theseunreasonablerequirements,especially,whentheyappearafterfinancialnegotiationsarecausingincreasingcostsfortenants,whichaffectsdecreasingprofitability.We observealso,thatmodernizationsofpartscommonareconductedbylandlordswithoutnotificationtotenantsandbilledinservicecostswithoutagreementswithbusinesspartnerscreatingthevalueofgalleriestrade.

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