Pub Street rent inflation

Soi Dog · Post by **Soi Dog** » Wed Jan 21, 2015 3:26 am

400% would be a bit of an obstacle.

Party’s over for some on Pub Street
Sat, 17 January 2015
Nicky Sullivan
For the past decade, Siem Reap’s answer to Khao San Road has pulled in the punters with cheap and cheerful fun. Now rent hikes are forcing out some of its longest-standing businesses

Some of the best-known bars, restaurants and shops along tourist hive Pub Street have been forced to close their doors after rent hikes of as much as 400 per cent.

Three have closed in the past three months, and more have their leases coming up for review in the next year or two.

The rent increases have been attributed to a surge in competition in the 10 years since tourism started to take off in Siem Reap.

“Everyone has to raise their game now,” said Alex Sutherland, a businessman who has taken over two of the leases and has plans to replace them with higher-end operations.

Among the businesses that have been forced to relocate are Linga Bar and clothes store Rogue, while the latest closure was expat institution The Warehouse, which poured its final draught on January 1.

Opened on a boozy dare by Scot Alan Gillam and American Jediah Byrom in February 2006, the two men decided to throw in the towel after the landlord more than doubled the rent from $1,500 per month to $5,000, with an 18-month deposit on a six-year lease.

more

http://www.phnompenhpost.com/special-re ... pub-street

Bitte_Kein_Lexus · Post by **Bitte_Kein_Lexus** » Wed Jan 21, 2015 6:50 am

Jesus... Greedier than Phnom Penh landlords! Doesn't matter though, a different "go to place" will slowly be created in a different spot. Someone will start renting a bit out of the way, then more owners will follow and next thing you know you'll have a new backpacker row... Ten years later the cycle will happen again.

phuketrichard · Post by **phuketrichard** » Wed Jan 21, 2015 7:46 am

someone will always step in and take their ( the renters) place thinking they can do a better job
and make the rent.

Same thing happened here in Phuket with rents on Patong beach, The people with 15-20 year leases couldn't afford the raises so moved on, only to be replaced with more expensive places

Soi Dog · Post by **Soi Dog** » Wed Jan 21, 2015 7:55 am

I don't see the rent hikes as a bad thing at all. It might be a very good sign. Just bad for the current shop owners. Life goes on. If multiple shops stay vacant for an extended period, and customers drift away as a result, then the property owners will have shot themselves in the foot.

Bitte_Kein_Lexus · Post by **Bitte_Kein_Lexus** » Wed Jan 21, 2015 9:47 am

I agree. It's what happens in Phnom Penh all the time. Business leases a building. Business goes really well. Landlord notices the business' success. Landlord hikes the rent to an unreasonable amount once contract is up. Business negotiates with a stone wall. Business relocates. Place stays empty for several months. Owner finally realizes his folly and reduces the rent to what the market dictates is fair.

Garry.Crabtree · Post by **Garry.Crabtree** » Wed Jan 21, 2015 12:32 pm

Simple maths really. US$5,000 x 18 months = Range Rover.

LTO · Post by **LTO** » Wed Jan 21, 2015 3:39 pm

So, on the busiest tourist street in the center of Cambodia's most important tourist town, seeing millions of vistors per year, a business will need to pull in $170/day to pay rent. They may not be able to do it selling 40-cent drafts, but I think those days are over for Pub Street anyway. My guess, and this is just a guess, they're going to get the 5 grand, the little 1 and 2 man traveler/expat operations are going to move to the outskirts (Sok San and beyond and east of Wat Bo), the big boys are going to dominate the street and do just fine. In a couple years the street will be filled with places like Cambodian BBQ, Khmer BBQ, BBQ Khmer, Cambodian Khmer BBQ, BBQ Cambodia, etc, all selling the same Phnom Pleungs, $12 bowls of Amok (made in vats) and $3.50 Angkors to 3-day tourists, and all run by 2 or 3 different companies. They'll make enough to pay the per day rent in less than 30 minutes. And grizzled old expats will grumble about the good old days when there were only hundreds of people on the street at happy hour, they could afford a beer at the Banana Leaf and Angkor What was only 4 shops wide.

Pub Street rent inflation

Pub Street rent inflation

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