There are two words that have come to mean a great deal in the late 20th and early 21st century: property and relationship.

Perhaps they are words that have meant a great deal for many centuries, but somehow I think today we place enormous importance on relationships and property.

Well, after all, they relate to some very primal needs; shelter, and the need to survive as social beings.

So why am I talking about this today?

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Auckland businesses face an interesting time in the coming months as business confidence picks up, major event such as the Rugby World Cup hit town, and commodity prices continue upwards.

BNZ economist Tony Alexander says business confidence is the best it’s been for nearly 18 months.

Coupling these facts with research data on the commercial rental market, I’m suggesting the market is about to hit a very interesting crossroad. (more…)

The Christchurch earthquake has the whole country reeling, for people both close to the tragedy and those far away.

I think most of us are really simply lost for words to describe the enormity of it. The devastation has hit on so many, many levels.

And we all come to terms with the shock in our own ways.

For myself, I am lucky not to have anyone close to me deeply affected.

In a professional capacity, I am already working with clients in Christchurch as they assess how to go about picking up the pieces. They are deeply traumatised and very unsure about what to do next as they stare through rubble, past armoured personnel carriers and cordons at where they used to work.

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I’ve been reading through some of the latest research on the commercial property market in Auckland and found two key trends.

The first is that the high vacancy levels in and around the Auckland CBD are going to stay that way at least until the end of 2013. Despite the fact that larger corporate organisations could take up 80 percent of the new office space about to come available in new buildings, the current buildings they vacate will add to the existing vacancy levels and keep vacancies high.

The second trend that relates to this is (more…)

I’ve been talking for some time now about how much of a tenant’s market it is for leasing property. It’s been keeping us busy working with clients looking to negotiate good deals and take advantage of the over supply of commercial space. And if you are in the right position, it is a very good time to move.

But a word of caution…

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Over the past few years I’ve written a number of times about the Australian influence on the New Zealand property market. First it was, “The Aussies are coming”. Then it was, “The Aussies are here”. And most recently, “The Aussies are here and they are us”.

And today, with the oversupply of commercial rental office space and residential high rise space, they are struggling for good returns the same as everyone else.

Let me give you a snapshot…   (more…)

The great majority of us still have some pretty old fashioned ways of thinking about property.

Just the very words landlord and tenant come from a bygone era when we stop to think about it. It was a time of feudal land ownership when there really were lords with peasant tenants who were completely subservient to them.

Language is a powerful thing, and using these words today always implies a power structure. In the subconscious mind (more…)

I was browsing through some blogs and online articles about commercial property leasing in the United States and it dawned on me (not for the first time!) how limited our systems in New Zealand are for tenant representation.

In the USA, Australia and other countries it is very much the norm that both landlords and tenants alike have their interests independently represented. (more…)

Clients I speak with regularly say the commercial property market has become increasing stressful and complex. So much so, that it inhibits businesses from making decisions about future locations; whether to upsize, downsize, move or stay.

The message I hear is that there is a general fear that making the wrong decision about their property needs could tip a business over the edge. Because of this worry, the inclination is to defer doing anything.

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Adverse weather conditions can put enormous pressure on even the best of tenant/landlord relationships.

I’ve already dealt with one situation this week where water damage has soured relations between tenant and landlord to the extent that they are exchanging lawyer’s letters; each party is (more…)

Research is showing that the high vacancy levels in commercial lease property in New Zealand is a trend that looks set to stay for the next couple of years.

Low interest rates, inflation and slow recovery from the global economic crisis will have an ongoing ripple effect on commercial property.

In the short term, this is leading to an increase in trends such as “shadow space” where a business (more…)

In the past few months I’ve noticed a definite trend towards organisations searching for new premises.

A year ago, this was not the case at all. The bulk of our work then was negotiating rent reviews and lease renewals. People were still nervous about making decisions in recessionary times. (more…)