How to Boost Landlord and Tenant Relations in Commercial and Retail Property

foyer of retail shopping centre

The shopping centre and retail property markets are changing today, and that will reflect on how tenants create sales, attract customers, and grow their business over time.   The internet and the ‘online’ side of things are changing how property occupation works, and just what businesses need to lease premises successfully for the long term. 

Many businesses today don’t need to lease as much space as previously.  Many business people are completely mobile and attending an office daily is just not required for many reasons.  Customers and manufacturing are perhaps the only reasons a business or company would need a physical property ‘base’ to operate from.  On that basis, the landlord and tenant relationships of today are more important than ever before.

Relationship Rules in Investment Property

How can a landlord encourage positive tenant relations?  Try some of these for starters:

  1. Regular meetings – this sounds logical, but it is surprising just how ‘random’ many landlords are with tenant contact.  They let the contact go until something starts to pressure the tenant relationship or the occupancy.  When the ‘pressure’ is on, lease negotiations are always harder, and the alternatives to solving a lease problem will be less for both parties.
  2. Create comprehensive leases that work for both parties – the lease document supports occupancy and income stability.  When you look at it from that perspective, how a lease is created should be carefully considered.
  3. Clarify and control critical dates for all leases – this is a planning process of an advanced and positive nature.  Critical dates coming up with any leases should be watched and tracked at least 18 months out from the ultimate date.   That is how you can stabilize an investment property.
  4. Be flexible in tenant mix alternatives – if a tenant is under pressure, then look at the variables of expansion, contraction, or relocation.  There are ways to solve a tenant lease problem related to local business pressure.
  5. Understanding property use – for the investment property to thrive over time financially, the use of the property must be optimized.  There will be a balance between common areas, leased areas, car parking, and services.  The owners of competing properties of the location will always be seeking to attract tenants.  All the more reason to stay close to your tenant mix and property occupancy.
  6. Occupancy is not just about rent – collect a fair and reasonable rent for the property and the location.  Aggressive and high rents force people away from a property.  Look at the bigger picture of property occupancy costs including rent and outgoings.  How do they compare to other properties in the location?  Preserve your tenant mix by keeping occupancy costs in the ‘fair and reasonable’ zone.
  7. Negotiating leases early – if a lease matter is coming up (option or expiry), it is timely and sensible to negotiate any lease matter early.  Don’t wait for the lease date to arise before you start discussing things with the tenant. 

So these are valuable ways to work with tenants and preserve lease occupation in commercial or retail property.  Improve your investment property by negotiating with and consulting your tenants in a positive way.  Their business success will be the foundation of your real estate investment and its performance.

How to Boost Your Commercial Property Income Stream

skyline of Brisbane buildings

The commercial property market in Brisbane generally provides some good opportunities for investors looking to put their available cash or equity into an asset class that performs well.  Commercial and retail real estate is and asset class with a cycle all its own. 

Brisbane Queensland is typically a location of growth in Australia.  The city and suburbs can usually avoid the high peaks and troughs that you see in the Sydney and Melbourne property markets.  Brisbane on the other hand is at the northern end of the eastern seaboard and the location gives local and international businesses a close and convenient doorway to access the Asian ports, cities, and economic zones.

If you are an investor that is ready to choose a property of quality in Brisbane, there are some things to look at in selecting the ideal investment property by type and location.

Here is a list of property market indicators to regularly watch and assess:

  1. Business cycles that are evident or predicted – Commercial and retail real estate is always changing.  Business sentiment drives property occupancy and enquiry.  It directly follows that government support for the business sectors will build or undermine business sentiment.  Property will be in that cycle of change and churn reflective of Government policies.  Understand what the local, state, and national governments are doing for local commerce and business activity.  What are the ‘businesses of attraction and growth’?
  2. Property precincts for preferred property activity – You have different zones and parts of the greater city that are ‘prime’ locations for enquiry and occupancy. Look for them and understand them. They are typically the CBD, the City Fringe and Inner Suburbs, Port of Brisbane, Eagle Farm, Newstead, and South Brisbane.  In those areas there is plenty of change and rezoning happening where new property developments are allowing the repositioning and growth of the business community.  Changes to property use and precincts are opportunities for the smart investor.
  3. Successful businesses by type and location – You will find that some businesses like to be positioned near ports, seaports, and rail heads.  If you prefer investing in industrial property, then look at those suburbs that are near those transport corridors.  Drive around the suburbs and look at the larger assets, the newer buildings, and the upcoming land developments that could supply more warehouse space into the zone.
  4. Future and current property supply and demand – What are tenants and businesses looking for today with their relocation needs?  You will see some patterns with that, and the active brokers or agents will have a good idea of what the property enquiry is doing and what businesses looking for.
  5. The different property types and the trends of prices and rents – Are prices and rents changing?  How have they moved over recent years?  Look at the last few years and chart the price and rent shifts.  Thriving businesses can afford newer premises in prime locations.  So, everything comes back to business sentiment and change.

These are some of the main indicators that will have an impact on property investment in Brisbane.   Use these factors as ‘guideposts’ to choosing your next investment property.