Rent is a major expense for small businesses, particularly those owner-operated businesses. And rent expense has a direct impact on business value and saleability.
The increases in commercial and industrial property values in recent years have seen landlords seek rent increases to reflect those values.
It is the rent paid tenant businesses that drives property value. And where the tenant business is unable to recover rent increases, tenant business value erodes. There is a point where the risks associates with running a business do not justify it continuing to trade. And no tenants paying rent leads to reduced property values.