Ratchet clauses in commercial property leases are something tenants love to hate.

That’s not surprising because the implication is that with a ratchet clause, rents always go up at the time of a rent review.

The ratchet clause in a lease is often that; a set in concrete element of the lease that means landlords can and will automatically ratchet up a rental when it is time for the lease to be reviewed. Just this week I Read the rest of this entry »

I’m predicting the commercial tenancy market is about to become a bloody battlefield as times get really tough for investors and landlords managing commercial property portfolios.

There are five key factors that will cause this warring between landlords.

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The commercial rental property market in New Zealand continues to be very much a tenant’s market… but there are many landlords who simply don’t get it.

Negotiating myopia
It amazes me in the many negotiations I conduct for clients how many landlords take such a short-term view and, by playing hard ball, lose out on securing long-term tenants. Read the rest of this entry »

Just a couple of years ago, the headline above would have made absolutely no sense to anyone. In fact even today, a great number of people would still think it is gobbledegook. But the world is moving fast and what is one day a word or term that only makes sense to geeks, can almost overnight become everyday language.

We now “Google” things, and “Facebook” people rather than research things or write letters, and suddenly we are accustomed to it.

So let me explain today’s heading…

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As we head into a new decade and optimism increases as the green shoots of economic recovery grow leaves, there is going to be some exciting new thinking needed for doing business.

It is increasingly an era of customisation, where people have more and more say about the goods and services they buy, and how, where and when they get them.

In my area of expertise – commercial property leasing – the Read the rest of this entry »

As the year comes to a close, many businesses (and homeowners) think about what alterations and renovations they can make to premises over the summer break.

When commercial tenants are reassessing space needs for the coming year, it is an excellent time to look at adjusting premises to fit your staff profile. Read the rest of this entry »

I’ve often talked about the trends towards sustainability and green buildings and how this is something that is with us to stay.

Work environments that are both green and user friendly are definitely in demand with employees, and also with organisations wanting to walk the talk around their commitment to the planet and people. Being green is Read the rest of this entry »

When people talk about innovation and smart business practices, we often hear the hackneyed cliché “thinking outside the square”. And usually it’s much easier said than done.

So today I thought I would share a story about a case where true outside the square thinking for one of our clients ended up improving their productivity, service to clients and reducing their rental costs.
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People often ask me what’s going on in the commercial rental property market. They’re all keen to hear the real oil, so I thought I would run through some current trends and some predictions.

I must as always qualify this by saying that there will always be exceptions to the rule and while these are broader trends, the situation will always vary on a property by property basis.

The current market is undergoing a double whammy experience of… Read the rest of this entry »

Smart kiwi managers are waking up to the potential savings on offer by consolidating and shedding excess office space.

The trends are fascinating to observe. Some smart & creative thinking is emerging and it’s far more sophisticated than a simple shoe horn approach to cramming more people into a space.

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Where and what people have for lunch can be a really interesting indicator about getting the location of business premises right.

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It is extremely easy for most of us to be lulled into thinking a quoted rental price is the main cost when entering into a commercial property lease. But lurking beneath that highly visible tip of the iceberg are some nasty extras.

I frequently experience people who enter into long term commercial property leases focussed on the rental cost per square metre. They see that as their main cost and don’t consider Read the rest of this entry »