Warehouse landlord says he was bullied by company

[PTWhatAGreatForum]

Warehouse landlord says he was bullied by company

The Warehouse's Kaikohe landlord was bullied into signing a lease on the company's terms after it threatened to close the store, he says.

The Warehouse announced last night it was closing, blaming the landlord, but said this morning it was now able to stay open because he had come back to negotiations.
But the landlord, John Levers, said the company told him it would close the store if he didn't agree to a cut in the length and value of the lease.

Full article:

http://www.radionz.co.nz/news/business/354226/warehouse-landlord-says-he-was-bullied-by-company

[fuzzlevalve]

Fair enough. No way to get leverage on a tenant in such a $%#*$%#@ small town.

[Beano]

Probably the Warehouse developed and sold the property at a low yield
The purchaser may not have factored in sufficient margin in the yield and had a diverse portfolio to cover a vacancy (which could last for a long period )
Keen to know what yield it was sold for to see if the margin was large enough to repay most of the debt.
If sufficient debt has been repaid then the lower rental may be sustainable ...with only a guarantee two years (of lease signed)...the landlord will have to work hard to bring the rest of the debt down incase this is the last term.

[Beano]

At the end of the day the Warehouse has to be profitable and the rent has to be affordable to a tenant

[PTWhatAGreatForum]

I have seen this sort of stuff before in backwater provincial towns. Petty landlord buys a commercial building and thinks they have it made, but really they are sitting on a piece of crap that noone in their right mind would touch.

In regards to buying a large format retail building in a place like Kaikohe - the only choice I can think of which would be even dumber is buying a 100 year old 15% NBS multi story building in the centre of Wanganui.

[Beano]

I have seen this sort of stuff before in backwater provincial towns. Petty landlord buys a commercial building and thinks they have it made, but really they are sitting on a piece of crap that noone in their right mind would touch.

In regards to buying a large format retail building in a place like Kaikohe - the only choice I can think of which would be even dumber is buying a 100 year old 15% NBS multi story building in the centre of Wanganui.

Did you buy that particular property in Wanganui?

[PTWhatAGreatForum]

Did you buy that particular property in Wanganui?

Hell no. I couldn't wait to leave the place.

[Davo36]

They must have been sorry to see you go MichaelNZ.

Petty landlord? Really?

[Davo36]

It really warms my heart to hear you miss your ex-tenant Davo. The same one you winged about recently.

Love or hate... It's all the same.

What? Who says I miss them?

And as for whinging, (it has an 'h' by the way), I think you take the trophy for that don't you? Constantly going on about landlords ripping you off etc.

[Perry]

The Junkhouse (where everyone gets some garbage) has sunk a long way from some of it's early, pro-kiwi ethics pronouncements.

But the story reminds me of something once said to this effect:

If you owe the bank[s] a million dollars, you have a problem.

If you owe the bank[s] 15 million dollars, the bank[s] have a problem.

Beano is likely on to something. A lot of Farmlands branches are developed that way, nowadays.

If the Rusty Shed quits Kaikohe, the LL would likely be left with no realistic tenant replacement prospect.

[PTWhatAGreatForum]

What? Who says I miss them?

And as for whinging, (it has an 'h' by the way), I think you take the trophy for that don't you? Constantly going on about landlords ripping you off etc.

I have been very fair and balanced between landlord and tenant, in this forum.

You choose to be blind to that to fit in with your narrative that the landlord is the almighty king in the world. There are several posters here who have done a lot of whinging about how tough their life is as a landlord (irony considering how great property is touted as here) but that's righty-fine in your book because they complain in ways you like.

So feel free to have your biased outlook dude.

[fuzzlevalve]

Maybe he thought you were winging your way above them Davo.

[Davo36]

I have been very fair and balanced between landlord and tenant, in this forum.

You choose to be blind to that to fit in with your narrative that the landlord is the almighty king in the world. There are several posters here who have done a lot of whinging about how tough their life is as a landlord (irony considering how great property is touted as here) but that's righty-fine in your book because they complain in ways you like.

So feel free to have your biased outlook dude.

You were making sense for a bit there Michael, but you're raving mad again. Onto the ignore list again.

[fuzzlevalve]

I think they whinge Michael more to bring some balance tot he lefty rhetoric in the media. In truth both are reality. Being a landlord is an expensive, thankless pain in the neck. So much so I often think about selling up. But the flip side is nothing comes close to delivering wealth to you over time. and allowing you to recover from left field events etc. So this dissonance sits with most landlords. And the more looney stuff comes against us from the left primarily the more we whinge AND remind ourselves of why we do this. I believe if there was a better option most/all of us would be doing it.

It appears to me you are in the same boat. You're here because a part of you wants (more) financial freedom and clearly property is the way to do that. However your socialist worldview creates internal conflict about he whole idea. Quite a healthy place to be really, makes you consider your life in more detail.

[PTWhatAGreatForum]

It appears to me you are in the same boat. You're here because a part of you wants (more) financial freedom and clearly property is the way to do that. However your socialist worldview creates internal conflict about he whole idea. Quite a healthy place to be really, makes you consider your life in more detail.

Very interesting view, because I am not a socialist. Actually, some of my views would be regarded as quite capitalist and liberterian.

My issue is with excesses - which in this case are capitalism and property tied together. I am not a property investor nor do I wish to be one at this point in time. But I do expose myself to the lions den of sharing ideas, and you know, many of you seem to be quite decent sorts.

Ultimately, I strive for balance - the position of the middle path.