$250,000 saving on lease negotiation - Parramatta, Sydney
Our 'make good' agreement with the lessor resulted in a substantial cost reduction for our client.
- 2,850sqm retail site at the heritage-listed 197 Church Street, Parramatta, for Culture Kings
- Effective initial lease negotiations meant that our client did not have to ‘make good’ at the end of their tenancy
- Successful early lease surrender
- Saved our client approximately $250,000 in property costs at the end of the lease
Tenant Leasing Group is pleased to have worked with Culture Kings through this lease’s life cycle – from finding the site to handing back the keys.
After negotiating lease terms – including a clause that meant our client did not have to ‘make good’ – and getting the store open, we planned and executed on their next move to a store with higher foot-traffic (at Level 1, 159-175 Church St, Westfield Parramatta), and have now successfully completed an early lease surrender, and return of keys.
By finding a suitable site and securing a competitive initial incentive, we helped Culture Kings open their doors in Parramatta in 2018. The unprecedented fit-out design and features includeD an elevated DJ booth, half basketball court and 18-k gold basketball net, a signature shoe and hat wall, and a barbershop with a bar element.
We subsequently found the next site for them to grow into – Parramatta’s Westfield Shopping Centre – and organised a successful lease surrender for when their new store became ready (2022).
During the original negotiation, we made the case that since the site was slated for redevelopment, the tenant should not have burdensome and costly ‘make good’ obligations (clearance, refurbishment, repairs, cleaning and more).
This means that when it came to handing back the keys, our client Culture Kings avoided spending approximately $250,000 to restore the site back to it’s original vacant condition.
Tenant Leasing Group created cost savings for Culture Kings by managing a strategic lease surrender, enabling them to focus on eCommerce business growth.
Having recently opened their new locations at Westfield Parramatta, and further afield in Las Vegas, Culture Kings continue to take the world by storm. We look forward to supporting their bright future.
Culture Kings are the global pioneers of streetwear. Acquired by a.k.a Brands in 2021, Culture Kings’ experiential blend of fashion retail, live events, music and sport culture, has resonated worldwide. Tenant Leasing Group has worked with Culture Kings to open multiple retail and industrial sites in Australia and New Zealand.