Fast Food retailer McDonald’s will have its rent reduced by 47 % on Dublin’s prime Grafton Street location.
This comes less than two weeks in advance pf the Supreme Court review that rents must be allowed to fall in line with the depressed open market rate.
McDonald’s on Grafton Street: its Zone A rents have fallen from €10,085 per sq m (€937 per sq ft) to €4,843 per sq m (€450 per sq ft).
O verall the retailer was paying a rent of €1.15 million under a 35-year lease which ran out at the end of 2011. The new rant agreement comes with a figure of €600,000 and a five yearly rent review which will be based on actual market rent values.
It has been reported that some landlords – mostly pension funds – have refused to cut rents saying that reductions in turnover had not been recorded and as such the rent was not prohibiting successful trading.