The story behind the Espresso Republic sign

Capital Times reports:

BROKE former café owner John Matias is says high rents will change the Wellington we know and love, “When people can’t afford the rent the big names move in. Streets become predictable, like Auckland’s Queen Street, and you don’t go there for fun anymore.”

A month ago, the Espresso Republic Café owner walked out of the café he’d owned for nearly seven years.
“I know in my heart I did everything a hard working person could do, but I had to leave. I have nothing now,” he says.

He’s lost his business, and the house he mortgaged in an attempt to save the business.

When Matias moved into the premises in 2003 his rent was $7 000 a month, “A year later the new landlord came in and nearly doubled the rent in one hit. Soon it was $15 000 a month.”

It’s hard to say if the rent is reasonable or not without knowing the square metres being leased. But I am curious as to how the landlord can double the rent after a year.

Normally commercial leases are for a three year term, with right of renewal for a further three years, and some sort of arbitration mechanism for setting the rent for the second term of three years.