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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The first thing to realise when you are about to enter into a lease for a commercial property is that there is no such thing as a standard contract.

I get concerned that many individuals and organisations believe that commercial property leases are standard [they are not] and that any “standard” variations are simply the preserve of the landlord [they are not]. (more…)

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 often offer words of caution about why you need to keep on top of property lease portfolios. Without the right expertise and systems in place, things can go badly wrong – as the following example illustrates…

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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.

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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

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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…)