Small Business Rent Squeeze

This power imbalance is reflected in the almost unmitigated ability of shopping centre management to raise rents, and in the dramatically reduced rents paid by larger anchor tenants, said Tony Steven, COSBOA chief executive.

His comments come as submissions for the Productivity Commission's review into retail tenancy leasing closed earlier this week.

Steven spoke about the joint submission COSBOA has made with affiliate bodies. the National Council of Lessees of Australia, the Franchise council of Australia, the Australian Retailers Association and the Western Australian Retail Traders Association.

"[Shopping centres] have a very powerful negotiation position when dealing with small business tenants, reflected in their ability to raise rents at the end of leases, making it difficult for small businesses to make a profit…and if they leave, they lose the goodwill they've built up."