Click here For most commercial tenants approaching the end of their lease, a “Stay Vs Go” decision will be faced. Many important factors go into this decision and in 2020/2021, there will be even more to consider. COVID has led to a sudden and rapid change in the workplace landscape. There are new behaviours among tenants and their workers – some which will outlive the health crisis and influence “Stay vs Go” decisions for years to come. In addition, the need for most businesses to cut occupancy costs has led them to re-visit their property strategy. Landlords have responded to these changes quickly, adopting new flexibilities in their lease terms in order to hang on to good quality tenants and a steady income from their assets.
The moratorium may have been extended to the end of December, but businesses still need to plan for the future direction of their workplace. Workplaces will never be the same. People’s expectations have changed in terms of what they want and need from an office and this will significantly impact future property decisions.
The “Hub and Spoke” is an approach that we have helped clients implement as they face growth, downsizing or other major changes within their organisation. When executed correctly, the Hub and Spoke method can improve business’s bottom line while boosting productivity, performance and wellbeing among staff.
Thinking of re-signing your lease or moving to a new office? Have you considered that right now you may not need an office at all
The partnership between commercial landlords and tenants has never been more important. As we move deeper into unchartered waters, this partnership is likely to influence crucial decisions, and in some cases, present opportunity for both sides.
In the wake of substantial change to workplace circumstances, many businesses are questioning how they can better utilise their space and cut occupancy costs. In particular, those nearing the end of their lease in the next 6-12 months need to make the immediate choice to stay in their existing space or walk away
No-one could have predicted that the way we work would change so dramatically in such a short period of time. This sudden change has led to dialogue around “the future of the office” with real estate and design experts eager to see what the long term office landscape will look like.
But more deserving of our attention right now, is the current state of the office landscape. How will businesses approach a re-entry into the office after the latest lockdown? What are the short term implications of these lockdowns on our office space? Two things are certain:
1.The office itself will never completely disappear and there will always be a need for it in some form or another
2.When we eventually return, it won’t be to the office as it was pre-COVID
Here are some of the considerations around office space right now:
The end of the Jobkeeper period is fast approaching as businesses begin to prepare for a new normal after lockdown.
Over the last few months conversations have taken place between commercial tenants and landlords as they settle on rental relief agreements. Historically, landlords and tenants have not been expected to act in the best interest of the other party. But COVID has forced us to come together and be considerate of each other’s position. This new found co-operation will hopefully re-define the commercial landlord-tenant relationship and answer the following questions in the immediate aftermath of lockdown:
This end of financial year will be like no other. Businesses across the world are beginning to feel the true financial impact of this crisis as the need to cut costs becomes more vital than ever before.
In this rapidly evolving marketing, organisations are forced to adapt and make swift changes in order to protect themselves financially. For many businesses, the largest expense is real estate. Rental expenses remain a key area to consider in cutting costs and it is not too late to maximise rental savings at this stage. There are 2 ways you can take action on this right now:
Today the national cabinet will discuss commercial rental relief. here's what you should be thinking about while this happens...
COVID-19 is more than a health crisis.
The speed has caught everyone off-guard. An already strained economy, suddenly finds itself panicked and grinding to a halt, with companies, small and large, collectively staring into an abyss. For those businesses holding a commercial lease, serious concerns have been raised in the past few days, regarding obligations, provisions and the next step.
So should you speak to your landlord? After today, yes.
Office vacancy rates remain low for Melbourne in the first quarter of 2020, with the key drivers being competitive rents and a great city lifestyle.
The city continues to prepare for future growth with over 600,000 sqm being supplied by 2022. Over 400,000 sqm of this will come to market in 2020. *
The latest data from the Property Council of Australia reveals that, as of January 2020, Melbourne’s vacancy rate is the lowest in the country, with only 3.2%, compared to Sydney, which has a vacancy rate of 3.9%. This makes our city the tightest leasing market in the country.
*This article is based on data from The Property Council Of Australia 2020 Office Market Report
These days most organisations are aware of the role that property plays in supporting their business. However, a common mistake occurs when the choice of properties is presented as the final offer, without flexible solutions to address changing business needs. Many businesses believe that what they see is what they get without properly understanding a property’s potential.
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