A rapid rise in restaurants closing coupled with the number of them struggling to pay rent has led to a flurry of dealmaking involving brokers, landlords, tenants and realtors for some of Toronto’s most sought-after commercial spaces, according to multiple industry insiders.
In some cases, landlords are striking different deals with different tenants, and forcing tenants to sign non-disclosure agreements about the terms of their respective deals with each other. In other cases, landlords are renegotiating leases out of fear that rapidly declining rent prices will cause tenants to seek cheaper premises.
tap here to see other videos from our team.
“Right now, it’s a mad scramble,” said Stephen Lilly, a commercial realtor and restaurant broker who runs his own company, Toronto Restaurant Brokers. “You will have the same landlord dealing with a different property in a completely different way.”
Andrew Oliver, chief executive of Oliver & Bonacini Hospitality Inc., a restaurant group that operates almost 40 restaurant and event spaces in Toronto, Montreal, Calgary and Edmonton, said he’s dealing with an “unpleasant” landlord who requested he sign a non-disclosure agreement when he even broached the question of renegotiating the lease terms on an existing property.