Rent reviews demanding increases of 50 per cent or more have not been unusual over the last 12 months say London’s leading dealers.
Mallett, one of the few antiques and art dealers quoted on the London Stock Exchange, attributed the 54 per cent fall in operating profits recorded for the first half of 2008 in part to a rent review at their premises on 141 New Bond Street.
The firm, who recorded an operating profit of £522,000 on a turnover just shy of £8m for the first six months of the year (against a profit of £1,143,000 for the equivalent period in 2007), say the figures reflected not just difficult trading conditions but also a 50 per cent rent increase imposed by their landlord.
The costs incurred launching a new contemporary design business, Meta, saw an overall operating loss of £328,000.
Property market analysts say that – despite the economic downturn and the difficulties faced by the property market as a whole – rents in Mayfair are gathering pace as global brands seek prime retail space in time for London’s staging of the Olympic Games.
Other dealers with premises in the area have confirmed to ATG that similar rent reviews are underway in many properties as Bond Street’s multiple landlords look to capitalise ahead of 2012.
By Roland Arkell