The Economy is Forcing A Change in the Commercial Leasing Game
Category Commercial Information
Economic hardship has been felt across the board with very few being immune to the challenges. Commercial vacancies are on the increase. Some of my landlords have gone as far as to say this has been the toughest property cycle in two decades.
Trends are changing and the way people are thinking and working is challenging the old traditional model of entering into a three or five-year lease. Businesses are growing at more rapid rates and opportunities to expand quickly is what is required.
"Innovative leasing options" are the new buzz words.
In some cases, Landlords are offering a no rental or reduced amount over the December/ January season to assist new upstarts. Shared spaces and the way common spaces are minimised in a property is becoming the norm. The demand for "hot desking" is on the increase.
A recent encounter with a project management company proves this point.
Jane works for a company that operates on tight timelines with project management and coordination teams. She used to spend an average of two and a half hours in traffic commuting to and from work. She requested a trial period to work from home but had to come in for meetings on a Friday to give feedback and to keep pace with the new plans and ideas. Saving 9 hours of travelling time a week meant she effectively worked an extra day and managed to deliver on her project two weeks early. Whilst this does require a more disciplined regime at home, this type of work and time management option is becoming ever more popular and perhaps an office with less fixed desks and more hot desk space could be considered.
Communal or shared public spaces in a multi-tenanted office environment are very much on the increase as businesses evolve into hubs for meet and greet but are no longer gearing themselves up as the central operating point.
Perhaps a relook at your business structure, your property requirements and your long-term goals should be revised to evolve with the changing landscape. Landlords are open to these types of discussions. Talk to a property broker to assist with renegotiating your terms and conditions to be more mutually beneficial in the long run. Given that we are close to the coal face and can see the changes happening it would be a good idea to talk to us before moving forward and committing to another "vanilla" three-year lease.
Author: Danie Antill