The added value of good tenant-landlord relationships I often think there’s a lot of baggage that comes with tenant-landlord relationships. It is almost as if we are hard-wired to expect stereotypes; hard-nosed landlords and careless tenants. This leads to a lot of… I often think there’s a lot of baggage that comes with tenant-landlord relationships. It is almost as if we are hard-wired to expect stereotypes; hard-nosed landlords and careless tenants. This leads to a lot of Continue reading “The added value of good tenant-landlord relationships”
Positioning yourself in the “Vacancy Shuffle” Some dramatic changes are set to take place in the office space landscape in Auckland’s CBD in the next five years… Some dramatic changes are set to take place in the office space landscape in Auckland’s CBD in the next five years. Some significant new buildings will be coming on stream and we will see 250,000 square metres (that’s well over two million square feet!) of new office space become available between 2009 and 2013. Continue reading “Positioning yourself in the “Vacancy Shuffle””
Is your lease relationship a shotgun wedding or a heaven-made marriage? It’s such a common sight to see blood on the floor during lease negotiations between commercial tenants and landlords… It’s such a common sight to see blood on the floor during lease negotiations between commercial tenants and landlords. Relationships are often tense, and can remain so throughout the period of a lease agreement. Both parties can be caught up in an ongoing battle. It is almost as if we automatically expect relationships between landlords and tenants to always be fractious. Continue reading “Is your lease relationship a shotgun wedding or a heaven-made marriage?”
Watch out for dirty tricks Tough economic times bring out the best and the worst in people. While the best will look laterally and creatively to maintain profitability, others resort to cutting costs in an underhand way. Over the years, I’ve found some commercial landlords… Tough economic times bring out the best and the worst in people. While the best will look laterally and creatively to maintain profitability, others resort to cutting costs in an underhand way. Over the years, I’ve found some commercial landlords Continue reading “Watch out for dirty tricks”
Don’t Let the Sun go Down On You Tight money markets and financial companies in strife can make the viability of property developments and renovations change overnight. All developers from the scrupulous to the scurrilous can be affected. I dealt with one case recently with a… The Case for Sunset Clauses. Tight money markets and financial companies in strife can make the viability of property developments and renovations change overnight. All developers from the scrupulous to the scurrilous can be affected. I dealt with one case recently with Continue reading “Don’t Let the Sun go Down On You”
You Don’t Always Have to Cave in to Rent Hikes Despite the fact that leases give landlords a clear opportunity to put the rent up at scheduled times of review, the percentage and the conditions surrounding any increase are definitely not set in concrete You’ll have to excuse me if I sound a bit hot about this issue, but I am sick and tired of the prevailing attitude in the property leasing industry that significant rent hikes during rent reviews are something we all have to just live with. That is simply not the case. Despite the fact that leases give landlords a clear opportunity to put the rent up at scheduled times of review, the Continue reading “You Don’t Always Have to Cave in to Rent Hikes”
Dealing with Credit Crunch Lag As economic times toughen, business leaders with an eye to the future need to watch trends even more intensely. In the property leasing market, we need to frequently look a few years out in decision making processes. Buildings currently under construction that will open for business in the next few months were conceived and leased 2-3 years ago, when the world economy was booming. So the million dollar question becomes, Continue reading “Dealing with Credit Crunch Lag”
The Return of the Rachet Clause Because like the rest of our economy this year, the Property market has evolved too. As the market continued to rise and rise in recent years, the ratchet clause in property leases became forgotten and we virtually have a generation of businesses who have never felt the ratchet clause bite. The use of ratchet clauses is on the up as property markets toughen and property owners look for ways to keep rentals up. Ratchet clauses have traditionally been used by property owners in markets where there is a possibility that property values might drop, dragging rentals down with them. There has been an ongoing argument over the ratchet clause so here is my spin on it… Continue reading “The Return of the Rachet Clause”
Room to Shrink or Grow Flexible leases are becoming the way of the future as staff levels are fluctuating more and more. We live in challenging times when it comes to predicting staff numbers and space needs. Getting it wrong and leasing space that ends up vacant or under used can cost hundreds of thousands of dollars a year. For instance, leasing 500 square metres that ends up unneeded can add upwards of $175,000 to the cost of a lease per year. However, on the flip side, a business that Continue reading “Room to Shrink or Grow”
The Devil is in the detail, or is it? The credit crunch has observers of the commercial property lease market shining off their crystal balls to try and accurately predict what is going to happen next. As is often the case, a lot of generalisations are bandied around about whether it is going to be a tenants’ or a landlords’ market. I prefer to work with a slim Chinese etching brush, and put some thought into each individual situation… The credit crunch has observers of the commercial property lease market shining up their crystal balls to try and accurately predict what is going to happen next. As is often the case, a lot of generalisations are bandied around about whether it is going to be a tenants’ or a landlords’ market. Continue reading “The Devil is in the detail, or is it?”
