The World Forum - July 21st, 2024

  Guys, Please Kindly  ❤️   Recommend

NICE MASK, LOSER ... : Some businesses face property-fee spike amid lockdown

As businesses brace for another COVID-19 lockdown, some are paying more for their space with at least one London landlord passing on a commercial tax increase from city hall.

Porcino restaurant on Hyde Park Road in London will be paying 24 per cent more for common-area fees in the plaza where it leases space, owner Gino Parco said.

Harry Hermann, the landlord and plaza owner, places the blame on city hall, saying he has to pass on a 6.7 per cent increase in commercial property tax he has to pay for the plaza at 1700 Hyde Park Rd.

“My sales are down 60, 70 per cent,” and may plummet further given the lockdown beginning on Boxing Day, Parco said. “This is a huge increase and to do it this year, the timing is terrible.”

While rent is set in a lease, common area and maintenance fees can be increased.

Parco pays $3,600 a month in rent, but the $1,900 a month in fees will increase by $460 a month. The common area and maintenance fees are intended to pay for such services as snow removal, property insurance and maintenance of the building.