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…

(more…)

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.

(more…)

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…)

One of the key impacts on the currently flooded commercial property market is the number of large corporate tenants moving to new buildings.

In Auckland, there’s a growing list of large banks, insurance companies, management consultants and engineering firms moving to bigger, better, brighter and greener premises.

(more…)

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. (more…)

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… (more…)

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 (more…)