(Tenants are you taking notice?) In Part 1 of this series, published in the previous post, there was discussion on how landlords can maximise their revenues by getting more money out of their tenants taking advantage of the many complex clauses in lease agreements, particularly those related to the outgoing recoveries. In this previous article,
(Tenants, are you taking notice?) Landlords’ primary business motivation is to maximise their revenues and dedicate their efforts working out how they get more money out of their tenants. Tenants, on the other hand, as occupier businesses in leased premises, have their attention focused on maximising profits from their business model. One of the often
Not all landlords are created equal. Bitter experience has shown that tenants can benefit by having a better understanding of landlord personality types – preferably before the lease is signed. As with all other commercial and social engagements, values, attitudes and service delivery approaches of owner investors in commercial property can vary significantly. These variations
The lease negotiation journey can be challenging for those without core property skills and not usually involved in the industry. The extensive jargon, variety of rental structures and plethora of complex lease terms can be daunting. Leasing incentives is another component of the lease negotiation process that is not well-understood, and that has details that
In the current commercial property market, tenant leasing incentives are well-entrenched. Based on the dynamics of the market, with landlords seeking to attract quality tenants to their properties, the capital payments involved can be significant. For tenants contemplating a relocation or consolidation, leasing incentives are often essential as a contribution to fit out costs or
In commercial offices, the most frequent complaints from tenants and users are about air quality and air-conditioning – it is ‘too hot’, ‘too cold’, ‘stuffy’, ‘toxic’, ‘noisy’ or ‘draughty’. The problem is exacerbated by the different needs and perceptions of occupants due to a difference in gender and varying shapes and sizes. Facilities managers have
Tenants have probably always had the challenge of having to try and reconcile their rental budgets with actual payments to landlords. Although this may sometimes be a result of poor budgeting, quite often it is the hidden costs that come through in the additional payments resulting from the vagaries of the ‘outgoing recoveries’ clause. For
Political one-liners rule the airwaves, and all parts of Australian society are trying to work out the likely impact of a carbon tax on their lives. But will this lead to behavioural changes by tenants of commercial properties and their staff – a key focus of the tax? And will the financial implications make businesses
Tenants are usually guilty of not managing their landlord relationships. Too often tenants will tend to take the submissive role in leasing arrangements. Tenants regularly respond to landlord demands without actively reviewing the claims being made. Then, when suddenly confronted with an obvious landlord ‘try-on’, they react with surprise and dismay at the audacity of
Lease rental structures have changed over the last decade. The incidences of mid-term market rental review – at three or five-year intervals – are less prevalent. Annual rent increases now tend to be fixed percentages, CPI or a combination. But virtually all leases with option periods attached are likely to include market rental review clauses.