Wellington has the benefit of a relatively stable property market in comparison to other centres of New Zealand, thanks to the consistent stability of government tenancies and the overall lack of prime real estate space in the CBD.
Regardless of the overall inner-city stability, we believe asset owners should take the time to review their portfolio position and outline strategic ways to guarantee their levels of tenant retention and attraction.
There are many ways to reposition your property to ensure longevity. Strategic upgrades and refurbishment to your building can overhaul both your cash flow and building value significantly.
Industrious has recently worked with a client to reposition their property to attract more corporate tenants. We did so by outlining a strategic upgrade to HVAC systems, upgrading the lobby and street entrance presentation, as well as the lift systems and cars. By doing so, the client has attracted some great tenants and retained the sitting tenants. We were also able to achieve higher rental rates which in turn increases long term cash flow and value. The return on investment makes a great business case for this kind of renovation and upgrade process.
It can be a difficult process to retain tenants especially in the post-COVID-19 world where tenants are looking at downsizing their office requirements due to work from home and remote working processes. We work with tenants to find other opportunities within the client’s portfolio that can better service them, ensuring a better situation for both the tenant and the client in the long-term. Even though a tenant may be downsizing, keeping them within the portfolio is key to maintain the relationship and the rental - albeit at a lower amount.
Review your Facilities Management and building condition. Both new and current tenants place high importance on the overall premises’ maintenance and daily operations, which many asset owners can forget! Taking the time to review your current FM situation can not only make a difference in the retention of current tenants, but to the long-term cashflow related to building repairs and upgrades as problems can be bigger in the futureif not taken care of in the short term.
A detailed and strategic long-term maintenance plan, CAPEX, and value adding projects not only provide clients with opportunities of new revenue streams but also mitigates cost risk of failing assets and adds to the overall value to assets in the long-term.
The Industrious team is experienced in all aspects of Commercial Property - we offer Property Management, Facilities Management, Project Management, Corporate Real Estate, and Advisory services throughout the Wellington region.
We’ve been working closely with our clients from the beginning ofthe COVID-19 situation in New Zealand to ensure we help our portfolio maintain their longevity, and assist both them and their tenants to grow and thrive in their commercial accommodation.
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