The latest quarterly RICS pub rent survey (main contributors the larger Pub Co’s) now has rents at an average of 7.5% of PROJECTED Fair Maintainable Trade (always higher than actual trade).
The Pub Co’s have gone very quiet on this little snippet.
FMT as we have always said, is a vast over estimation by surveyors and BDM’s, most have never run a pub or really understand the vagaries of catchment areas, local trade, true definitions of Competent Operator/Reasonably Efficient Operator compared to a Retail Genius, throw in Cherry Picking of Comparables and we have a vast over estimation of FMT.
This RICS statement could be interpreted as an admission that all leased pubs are over rented, compared to ones that have been to PIRRS or Arbitration, no wonder the larger Pub Co’s have gone very quiet on this little gem.
We have been and still are in probably one of the worst financial recessions in living memory, yet we have surveyors and BDM’s who happily brow beat any uninformed tenant/lessee into accepting unsustainable FMT’s.