Will you stay or will you go
Owning and running an industrial business is an all-consuming task and the admin’ that goes on behind the scenes to ensure the effective operation of all parts of the business equation is relentless.
The security of knowing that your lease is in good heart cannot be underestimated. When the occupation fundamentals of the property that you operate your business from are locked in, it’s one of the big boxes ticked on your business plan.
But given today’s low industrial property vacancy rates and a high-performing sector putting continual squeeze on available space to lease, it’s important to know where you stand with regards to your lease so as to avoid any business disruption come renewal or restructure time.
Bayleys’ industrial leasing team works closely with businesses to make sure that their leases are of mutual benefit to landlord and tenant.
Scott Campbell, Bayleys national industrial director, says the knowledge base that Bayleys agents can tap into is broad, current, and relevant and allows the team to share market insights with industrial business owners.
“When a business owner secures the lease on an industrial property, it’s easy for them to then get so involved with their business that they can lose sight of market dynamics and trends,” explains Campbell.
“We like to establish strong working relationships with business owners and key personnel to ensure that we can put market evidence in front of them to help educate them about current rates, possible landlord incentives, optimal lease terms based on trends and to make them aware of new opportunities that may come to the market.”
Here’s some things to consider:
• An experienced agent can help pinpoint opportunities, minimise your risk and offer up options that are aligned with your business objectives
• Be forward-thinking about your lease renegotiations – allow plenty of time to consider your options
• It can take up to a year – or more – for leases to come to fruition so be mindful of lead-in times in order to streamline the process and use it as a time to familiarise yourself with the market
• Don’t let an expiring lease get the better of you. See it as an opportunity to secure your business’s locational future – whether you stay put and wear the likely rental increase or venture to new premises
• Your current lease outgoings could be well below market rate – how would your business cope with increased rental outgoings? Make sure your figures and books are up-to-date so you know what you’re looking at.
• A Bayleys’ agent can review your lease terms and conditions and offer suggestions as to how to optimise your position going forward
• As Bayleys proactively works with and for its landlord clients, they’ll be in a position to take your brief and space requirements directly to the market and see what potential opportunities there are in the short, medium and long-term
• If you are considering a move to new premises or simply want to maximise the potential of the building you are currently in, consider using a professional space planner to identify how best to utilise space
• Consider whether entering into a lease for a new-build option could be right for your business. Rather than working around the constraints that an existing building might have coupled with high rents, maybe you could custom-configure a space for your operation that would have flow-on benefits to offset lease rates
Read more market insights from Workplace
Subscribe to receive the latest commercial news and insights from Bayleys Workplace