Sydney 11 February 2016. Small business owners are the forgotten victims of Sydney’s lockout laws, according to leading commercial property agency, Gunning.
Gunning Principal Malcolm Gunning said a dire situation has been created for business owners operating within the Sydney CBD lockout zone and in particular the Kings Cross area.
“We recently conducted a rent review on a pharmacy, a thriving business until a few years go, which determined rent needed to be dropped by half,” Mr Gunning said.
“The result is not necessarily a windfall for the tenant, because it reflects the poor trading conditions on Darlinghurst Road. The lockout laws have deprecated the value of the premises by half. This is not an isolated case.
“In Kings Cross it is well known, that most, if not all tenants, are not meeting their rental commitments and the landlords are fearful of terminating the leases because they won’t get another tenant.
“The time has come for the government to take responsibility and compensate business owners many of which, in good faith bought into the area during the Olympics and created entertainment hubs with the support of the government.
“While the government believes it is necessary to have a social conscious, they must also develop a conscious in regard to the economy and those who are losing their livelihoods.
“It appears it is only a matter of time before these laws are extended to other areas and small business owners in Newtown could face a similar situation if this goes ahead,” Mr Gunning said.
