Rent Increase for Campus Businesses

We have recently been informed that the rent paid by the independent retail units on campus are to double in the very near future which could see an end to the world of the cheap takeaway that is currently available to campus dwellers.

Businesses such as Pizzetta Rebuplica and the Fish and Chip shop are soon to see their rents increase by more then 100% in the next step of the university master plan which is currently being undertaken by the powers that be in a move that is said to be making the chargers more representative of the so called lucrative position enjoyed by the independent retailers on campus.

Many of the leases extended to the businesses ran out at the end of December 2007 and the University management have employed a third party to calculate the rent that should be paid by each individual company based on the size of the unit occupied and the location of the business on campus. The on going negotiations between the lease holders and this third party, believed to be based in Manchester has led to constant renewals of short term leases, with the relevant legal costs being covered by the small business and not the University, and a great deal of uncertainty as to the future of the businesses on campus.

Whilst it is unsure of the impact such an increase in the rent will have on the prices charged by each individual outlet yet one can safely assume that the increase will be noticeable (not sure about the wording perhaps too ambiguous and not definitive enough). A 100% increase in costs will logically lead to an increase in prices of more than 100% (given the probable decrease in demand) if the same profit margin was to be kept.

This raises the question over who really loses out in all of this. The University? Surely not as there will be replacement businesses to fill in the holes left by the current occupants of the campus world, with the introduction of chains being a large possibility given the high charges that are being asked for. The individual retailers? Well, partially. Although the increase in costs is obviously undesirable an increase in prices will go some way to keep each business at the same level as they have been in the past, if even slightly lower. The students? Now I think we have got it! An increase in rent will lead to an increase in the prices paid by every student who uses an outlet on campus. Given the low income of some students and the ever-rising rent of on-campus accommodation and an increase in tuition fees it would appear that campus living is becoming a virtue only made available to those who have not fallen far from the money tree. One would question the University management’s logic in out pricing the university campus when compared to the easily accessible more affordable accommodation and outlets in the city centre and around it.

Whilst the full impact of increased costs of on campus living one can logically assume that the expense to the students will only increase. Take away anyone? No, I think I’ll stay in and cook.