These straitened times can make it hard for business leaders to assess the best pace for their business – how much to hold off decisions about growth and expenditure, versus acting swiftly. It can be a tough call. Markets are volatile and it is tricky to be totally sure of your timing.

However, when it comes to property there are several certainties… Property is always going to be one of the highest costs on your P&L, leases will always hit a time when they’ve run their course, and you are always going to need premises to operate from.

My point is that there is always activity in the property lease market. Whether it is fast or slow, there is always activity, and there are always opportunities to strike a deal.

Just in the past few weeks we have taken on several new clients, most in Auckland and a couple in other New Zealand cities, who have made decisions to lease extra space to deal with growth. Several were prompted by their leases coming up for renewal.

So nothing will ever stand still completely when it comes to property leases.

Another aspect of today’s markets is that smart operators looking for space to lease will find if they put together a sharp package and make an offer to a landlord with vacant space, chances are they will be hungry to have their space let and you will end up with a deal shaped very much to your needs.

So I’m seeing ongoing activity in the market and have struck a number of deals that have provided clients with space ideal for their future needs – accommodating their growth plans, at the right price, and fitted out to suit their specific business profile and brand.

There has been one significant change in the way that we have finalised these strategic moves. Our clients, and in turn Parallel Directions, are paying particularly close attention to details on price. Cost savings at this time are critically important, and so we have been scrupulously checking and double checking all costs line by line to ensure we are always taking the lowest cost option available.

The lease market is still active, despite fewer overall transactions as I mentioned last week, and will continue to be. But attention to detail is counting for a lot. It is all important to strike deals that accurately reflect your space needs, and ensuring that the costs of any new lease, building fit-out, shift or expansion of premises are very closely and professionally monitored.

At the risk of blowing our own trumpet too loudly; experience and expert advice count for a lot right now. Just knowing the market, its history, trends, and knowing the going rate for all the costs associating with a building lease is extremely useful in the battle to keep costs to an absolute minimum.

This entry was posted on Tuesday 10th February 2009 and is filed under Property Leasing. Both comments and pings are currently closed.