GEM™ produces more consistent and accurate retail lease evaluations than the traditional methods. GEM™ provides a structured, comprehensive ‘value discovery’ tool for use by ALL stakeholders involved in retail leasing. GEM™ analyses actual retail lease evidence, industry benchmarks and financial data to evaluate what constitutes a “reasonable rent” for a specific retail lease and a specific retail business. Using GEM™ gives you the information you need to negotiate better lease outcomes. GEM™ offers a straightforward, step-by-step process to collect data and a sophisticated analysis methodology that incorporates a unique blend of business and property economics, as well as accountancy and valuation principles. GEM™ results are presented in a series of graphs that clearly illustrate where the lease being evaluated sits with respect to key metrics from comparable leases of similar businesses. Industry benchmarks, important averages and proprietary algorithms add powerful points of reference. A detailed report summarises the results and explains their implications for the parties involved. By collecting pertinent evidence together, then analysing and presenting it clearly, GEM™ also provides a common language to both tenant and landlord. It gives them a basis for negotiating a lease outcome that justifies the business investment and leaves an appropriate surplus for the landlord’s rent (as necessary for IFRS 16 compliance).
