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…)
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.
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.
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. (more…)
Desperation is biting in the commercial real estate industry.
There are very few commercial tenants looking for space right now, and many agents that specialise in commercial leases are consequently struggling.
With tough times come dirty tricks.
One ploy that is on the rise is where a (more…)
I’ve been working with a few clients in the retail sector in main centres of both North and South Islands in the past few weeks and it’s given me a new feel for the trends and issues retailers are facing.
I’ve been posting this blog for well over a year now, and I’d like to think we give readers a good heads-up on trends in the property lease market, as well as some insights into how the market works behind the scenes.
So it was interesting for me this week to take some of this expertise into the mainstream news media as a commentator on TVNZ’s business programme: NZI Business June 5: Renters’ market for office space
To steal a line from the well-known telco ad, now is good for having a close look at reviewing commercial leases across New Zealand. There are a number of reasons why now is good.
Firstly, I think it’s time we moved on from a wait and see attitude about the markets and international economic conditions.
Secondly, there are very few new leases being drawn up at the moment. Many new building projects are on hold, and the majority of Parallel Direction’s work with tenants right now is getting better outcomes on renewals and rent reviews. (more…)
Subleasing or assigning space in commercial property is an area of great interest to commercial tenants right now.
More and more commercial tenants are finding they would like to sublease or assign space that has become surplus to their requirements. (more…)
The ratchet clause has long been a dirty word to businesses with commercial tenancies.
More than 95 percent of leases have a ratchet clause. Traditionally they never advantage the tenant. (more…)
In today’s volatile economy, I’ve noticed some old wisdom coming to the fore. As everyone searches for answers, some standard old fashioned approaches are proving to be wise counsel.
For instance, the old saying “Don’t cut off your nose to spite your face” comes to mind.
It’s been my experience in many years of property lease negotiations that competitiveness, combativeness, (more…)
