Tenants should start the process of looking for new accommodation 9 to 18 months prior to their lease expiry. If you are considering a new build, or a building that needs major refurbishment, then the lead time extends to 18 to 30 months prior to lease expiry. We can provide an accurate timeline once we understand the nature and size of your business and your specific requirements.
As part of our service we offer a space assessment that will take you through a process of assessing your personal spaces, which include offices and workstations, and your interactive spaces, which include meeting/interview rooms, kitchens, break out areas and reception areas, as well as car parking. The assessment provides you with a full brief for how much and what types of spaces you need for your new or existing commercial premises.
Commercial real estate agents will list a commercial rent as either gross or net — and there is a big difference between the two.
Gross rent is an all-inclusive rent. For example, if the rent is advertised as $200,000 per annum gross, then this will include all costs of leasing the premises, excluding utility and your own occupancy costs (eg. tenancy cleaning, electricity, gas).
Net rent is the accommodation cost excluding outgoings, operational costs and utilities. Outgoings and operational costs can include council rates, water rates, insurance, land tax, management costs, security, repairs and maintenance, common area cleaning, etc. These expenses can be significant, so make sure you also get a detailed run down of these costs if the rent is listed as net.
Everyone wants to get the best deal when negotiating a new lease for their business, but it’s not always easy. The key is to reduce your overall occupancy costs over the term of the lease. Key items include reducing your rental and rent reviews, minimising your reinstatement obligations at the end of your lease, seeking lease incentives and additional building refurbishment works amongst others.
Our team of advisors are not only experienced negotiators, but also have in-depth market knowledge to be able to get the best commercial deal for our clients.
The answer completely depends on the type of business you are and your plans for the future. Landlords often prefer tenants to sign long-term leases ie. circa five years, as it provides more financial security. As a business that’s in a growth phase and/or a start-up business, you may want to negotiate a shorter term lease (less than five years plus renewals), as this may provide you with more flexibility. Businesses who are able to commit to a longer term (greater than five years) will likely be able to achieve a better commercial deal, which will greatly assist in funding the costs associated with relocating and undertaking a new fitout.
A lot of our clients ask this question and it’s an important consideration to make. One of the services we provide to our clients is an options analysis to determine which is the best option for your business. The buying market is extremely competitive and generally more difficult to identify and purchase a suitable property. The fundamentals of the commercial leasing market have moved strongly in favour of tenants given the amount of options currently available in all commercial markets.