Some 15 traders at Barrack Square in Perth have been hit hard by construction works on the nearby Elizabeth Quay project. Many traders rent their properties from a State Department and this is a Government project.
Traders have been granted an immediate 3 month rent relief. The concessions include a financial compensation process. All traders have been invited to submit financials for the current financial year and relief could be provided from July 2014 through to the practical completion of the project.
In a related announcement, officials have advised that new tenants in the Elizabeth Quay project will be offered special rent and fit-out incentives to ensure that their transition into a site with ongoing construction will be financially viable. The deal might involve rent reductions for the first two years before the Government tried to recoup the cost through revenue sharing arrangements after business started to pick up.
These sorts of negotiated arrangements may provide some pointers for our own QVM once any construction work starts.