If you are a landlord in Brisbane and wanting to lease a property to a new tenant today, it pays to fully understand the leasing and vacancy competition that you are up against. Let’s face it, tenants are looking around at everything that is available, and they are more selective in making a final decision. They generally know what the rents are doing, they know what their cost limitations are, and they can generally ‘shop around’ for the ideal vacant premises.
What’s Your Leasing Focus?
So, what are your priorities in leasing premises? What do you prefer out of the following?
A tenant leasing space?
A high rental?
It is sometimes difficult to achieve both points of focus in the one leasing transaction. A good lease with a new tenant should be a priority. A ‘fair’ rent is the best way to attract a lease and tenant arrangement. The escalation of rent over time can then be improved by a rent review strategy.
Today’s property and leasing market in Brisbane provides a broad selection of vacant space to the active tenants in most locations. The vacancy rates in the local property precinct can make your selection of rental a key part of the leasing process. Add to this some other leasing decisions such as:
Rental type (gross or net rent)
Expert leasing advice is critical here. Leasing a vacant tenancy is not just a simple decision. We guide our clients through some key decisions like those above so that the best lease can be created given all other property factors and pressures in the local area. Timeliness is important in getting a property leased today.
When you own commercial property in Brisbane, the decision of rental type will arise from time to time, when you are ready to do a new lease with fresh tenants. Prepare for the situations of a new lease so that you can find the right tenant and transact the lease effectively and directly at the right time.
It is a competitive property market today, and
tenants are sometimes hard to find and difficult to negotiate with. Ensure that
you have the total tenant and lease negotiation control from the very start
through a proactive rental strategy of lease marketing.
What type of tenant do you want in your
property? Not all tenants are
equal. Not all tenants can pay the same
rent regardless of the property and its location. Don’t focus just on leasing the vacancy;
focus on the best tenant that will support the asset and the investment plans
that you have.
Take the property and the vacancy to the
market with a defined lease strategy considering other competing properties in
the location. Review all the other lease properties in the location so that you
can position your vacancy for the best enquiry and the best opportunity.
The rental question will be between a net type
rent or a gross type rent in the leasing process. The decision you make should be driven by:
1. The rental standards set in the
local property market for a property of that type
2. The requirements of the tenants
in taking a lease
3. The age of the building and the
expenditure trends based on recoverable outgoings
4. The expectations of the
landlord in cash flow management
These 4 simple facts will help you with the choices to be made on the lease rental. If you need other help, an experienced local commercial property agent or property manager will have some answers.
Given that you must live with the rent amount, lease type and the tenant for a long period of time, it pays to fully consider the rent choice and make the best decision before you proceed. Property investments are a product of choice and strategy developed over time.