Frequently Asked Questions (FAQ) about leasing an office, warehouse, or retail
The most important thing in lease negotiation is knowing what your interests are and who shares them. Make sure your lease advisor is on your side. Every landlord has an agent, so tenants – businesses looking for a retail, office, warehouse or other site – need one too. If you’re considering a professional representative when dealing with commercial landlords and their lawyers, make sure they represent tenants-only. That way you can be sure they don’t work for landlords, agents, developers or property owners. Tenant-only representatives exclusively advise businesses who are seeking to lease property. By law, Tenant Leasing Group’s contractual obligations are solely to tenants. This removes any potential for conflicts of interest, and means we can negotiate exclusively on the tenant’s behalf to get them the best outcome. By contrast, some agents and non-independent tenant reps receive a commission from landlords or owners for finalising a lease deal. In other words, they get paid by the opposing party in the negotiation. We don’t. We’re paid by the business who is seeking to lease the site only. At Tenant Leasing Group, our remuneration comes solely from the tenant – not from landlords, developers or agencies. We work for commission from the tenant – receiving a percentage of the money that is saved through the negotiation. This means that we when the tenant saves money, we benefit directly. This shows that we have the same shared goal: it’s in our best interests to secure the best possible deal for the tenant. We’re tenacious negotiators with 50 years’ experience securing the best lease deals for business tenants. We exclusively represent you and our advice is conflict-free. Get in touch. To choose the right warehouse site to lease, you first need to know that it matches your requirements. Questions about size, location, zoning, amenities, and other site attributes that you may want to consider when searching for a warehouse include: Once you are clear on what is required, you can conduct a more accurate and thorough search of what suitable warehouses are available to lease on the market. It helps if you can leverage relationships with agents, access extensive property data and know about opportunities that may currently be ‘off-market’. Hint: this is where Tenant Leasing Group (TLG) may be able to help. The next step is choosing from a short-list, and then negotiating your rent and lease terms with the lessor (landlord). TLG has 50 years’ experience finding & signing leases for warehouses around Australia that deliver on business requirements. Any questions? Get in touch. Tenant representation is when an industry professional works on behalf of someone entering a lease, and supports the tenant throughout the leasing process. Here at Tenant Leasing Group we specialise in working with a range of business and non-business clients to fulfill retail, commercial, industrial, and other property needs. Get in touch. If you start talking to a tenant representative as soon as you start thinking about opening a new space you are able to establish your needs, get a better idea of costs involved with the lease and leasing process, and make the most of off market opportunities. No. We don’t own or manage any properties on behalf of owners, investors, landlords or developers. Our services are for tenants-only. We assist with retail, eCommerce, industrial & logistics and other commercial property requirements, including helping businesses find a site, negotiate a lease, renew an existing lease, and signing contractual agreements with their warehouse landlord or other lessor. We find and negotiate retail, warehouse, industrial and other commercial property leases on behalf of businesses to save them time and money. Remaining independent means we act only in accordance with client needs – not those of landlords, developers, or other parties. We have no conflict of interest – and this means we can strategically negotiate a lease that is most beneficial to the tenant. Our services are priced on a case-by-case basis. Among other things, we can help you find a site, negotiate a lease, renew an existing lease, manage your lease expiry, or review your entire property strategy. But, we only charge for the specific tasks we undertake on your behalf. You don’t get charged for what you don’t use. Dodgy leases can be legally binding, so it’s well worth hiring a professional tenant representative or property adviser (in the case of Tenant Leasing Group, we are both) to make sure you know what you’re getting into. By carefully selecting a shortlist of properties you are interested in you create a competitive environment where you can negotiate without fear of missing out. Tenant Leasing Group can guide you through these steps and negotiate the best deal on your behalf. If you’d like to know more, contact us. Most commercial leases allow the lessee to sublease or assign their premises. It is best to address this at the beginning of your lease, and a good thing to have in writing just in case. Still have questions? Feel free to get in touch. A “make good” just means that you the tenant are obliged to return the property to its original state at the end of your lease, within reason. The cost is equivalent to any work that needs to take place. A renewal option is a written agreement that states the tenant can choose to stay on and sign another lease when the initial period is over. Leases are usually written contractual agreements, and they can be pretty lengthy and beefy especially, for commercial uses. It is a lease administrators job to oversee what goes into them, meticulously editing and communicating quickly with stakeholders helps to minimise legal and financial risks. Proper written documentation and communication with your landlord is the most important thing renters can do to protect their rights. In-house lease administration at Tenant Leasing Group makes us extremely thorough, and industry experience helps tenant representatives to foresee issues and take precautionary steps in negotiating leases. Yes, the leasing agent has the listing of the property and represents the interest of the owner of the building, whereas a tenant representative works for the interest of the tenant in the lease. Some agents work exclusively on listing while others take on tenant representation only. Other agents will work with both. You should expect a tenant representative to act only in your interest, and to give you advice tailored to your situation. The tenant representative should help you determine how much space you need, what is your most important selection criteria, and then find and negotiate the space that best fits your needs. When it comes to the negotiation, make sure your tenant representative knows what is important to you. Base Rent is the the minimum amount paid by the tenant set out in the lease. Sadly we can’t – this is outside of our control. Covenants need to be addressed between the owners of the properties they effect, but you’ll be made aware of them before entering any leases should they effect you. Land use zones are tools used to guide and manage the current and future use of land. Land zoning looks to locate common users close together such as putting houses near shops, and parks near schools. We can help you establish where you can and can’t run your business, and we’ll provide research at every step of the way. Get in touch to find out more. It is the tenants responsibility to have utilities connected, pay rates, and have accounts terminated when they vacate the property. Prior to a lease being signed it is important to check with your preferred providers that they are happy to service the property. This includes phone/internet/TV services as well as electricity and gas. Firstly – consider it if you are unsure of anything, and want clarity. Before renewing a lease consider negotiating new terms or obtaining needed improvements. Even with an option to renew, the tenant is always able to renegotiate the terms. Often the marketplace has changed and the terms of your option-to-renew that looked good five years ago are now part of a more competitive market. A tenant representative can let you know where you can improve the terms of your lease, how they compare to the marketplace, and even negotiate with the landlord on your behalf. Tenant Representatives have access to the same database of available properties. Using more than one representative can result in more inquiries to the same property, resulting in the building owner misinterpreting demand and inflating rental rates. It would be more effective to find a tenant rep with more experience rather than more tenant reps, it will be cheaper and more effective. Tenant Leasing Group can help with a range of spaces including kiosks, pop-ups and subletting, which can be both less expensive and less commitment. We’d love to hear from you if you’re thinking of opening up a space – whatever the shape or size! Get in touch. Lease terminations are context-dependent and almost always involve negotiation. Staff at Tenant Leasing Group have 35 yrs experience in negotiating optimal exit strategies for clients in a range of markets. Get in touch to see how we can help with reading over your Lease to understand your obligations and options, and negotiating the best possible exit strategy for you. Theres a much wider variety of commercial property transactions than in the purchase of residential. Any real estate deal has its share of risks, and problems that can arise which you could never really foresee. In general, however, the risk and potential liability exposure that you face on a commercial real estate deal can be much greater than when you buy a house. We all have a pretty good idea of what goes on in a typical family home, but can you say the same thing about a piece of business property? Depending on the nature of the business, commercial property may have all kinds of restrictions and leasing problems. There may be greater concerns about hazardous materials or zoning issues. And there will always be questions about the suitability of the property’s location for your business needs. Also, in many instances, you are not afforded the same consumer protections on a commercial real estate deal that may be available when you purchase residential property. Unlike residential spaces, commercial and retail properties are usually quoted in an annual per square metre rate or annual total cost. Your Tenant Representative should bring experience, market knowledge, and a proven track record to the table. When you’re entering into a 3, 5, or 10 year lease (or longer!), you need to know you’ve got a practiced professional negotiating the best deal for you. Choose a Tenant Representative with a strong background in your key market, and someone who is willing to go the extra mile to ensure your satisfaction. Absolutely! We understand the market and have industry connections and off market opportunities to make sure you have plenty of options that suit your business. Get in touch. Property agents and landlords are working on behalf of owners, although these businesses may also offer tenant representation they will benefit from both fees paid by you and commission made selling and leasing properties for owners creating a conflict of interest in some cases. Here at Tenant Leasing Group we work solely in the interest of retail and commercial tenants and buyers – with expertise in analysing both the market, and business needs and staff with experience working on both sides of the negotiation we are adept to negotiating deals and managing property both efficiently and effectively. The Lease Term is the amount of time both parties commit to the Lease agreement. A bank guarantee is a promise from a bank or lending institution that, if a borrower defaults on repayment of a loan, the bank will cover the loss to the landlord, whereas a bond is a deposit to keep a property in its original condition. Top tips: E-commerce is growing – from meal kit services and online groceries to fashion and apparell brands, wine and liquor delivery, electronic goods retailers, co-warehousing, data centres, you name it. And many of these businesses need warehouses – for distribution, manufacturing, sorting, storage, fulfilment and other uses. Australia has a fixed number of warehouse sites available for lease at any one time. Fierce competition means that if you want to find the right location for your business, you need to know what is coming onto the market and when. Savvy business leaders know that having a specialist advisor on property leasing can save time and money – not just by negotiating better rental prices, but by securing sites at the right time, preventing downtime, stock wastage, and other costly inefficiencies. It’s not all about the biggest, newest sheds. A lot of the time, what is needed is a site that matches location, capacity, zoning, usage and longer-term strategic requirements. Tenant Leasing Group wants to work with new and established e-Commerce businesses who want to take advantage of great incentives and rental opportunities that are on offer, if you know where to look. We’re here to help businesses minimise warehousing costs and improve supply chain efficiency. Knowing where you can save money and how to make it happen are the keys for office occupiers. If you know to look for them, lease savings and great incentives are out there, including: The labour and admin involved in getting out of a bad lease are often what keep businesses in office space that is too expensive or they just don’t need. There’s never an easy time to reduce the costs of your office space, but it’s certainly worthwhile. Sourcing a new property and negotiating a fresh lease, renegotiating the lease for your current site, or securing a time-saving lease renewal or extension, are all ways that you the tenant can save on your office property overheads. Independent, tenant-only advisors can find sites and negotiate on better lease terms on your behalf – it’s what the team at Tenant Leasing Group have been doing for over 50 years. Business needs are primary when it comes to workplace and other property. While our advice and execution will vary for each individual client, our general approach to lease negotiation and management in the current context is to protect current and future business needs, and determine suitable workplace arrangements that fit those needs and risks given the COVID-environment. We’ll then define what changes are needed to lease arrangements to align with said needs and risks, and thereafter enter good faith negotiations with the landlord. Experienced tenant representation is crucial to successfully link specific COVID-19 rent relief needs with broader leasing and business objectives, and realise a favourable agreement. Get in touch – we’re ready to provide evidence-based advice that supports business continuity and tenancy needs in the new COVID-19 world. Technically, no. The Code’s intent and principles apply to all affected tenants and landlords, regardless of whether they qualify for the Job-keeper program. However, the mandatory aspects of the Code are dependent on an organisation being eligible and qualifying for the Job-keeper program. Because of this, some landlords are refusing to participate (or are slow to enter) in good faith negotiations with tenants that do not qualify as ‘eligible’ for the mandatory aspects of the Code. The coronavirus pandemic impact is unprecedented in depth and breadth across the Australian economy, including the property market and other national and global sectors. The National Commercial Leasing Code of Conduct (read it here) and the related messaging from Government emphasize the goal of business continuity, and the related need for acceptance of fairly-shared burdens between tenants and landlords, evidenced by good faith negotiations and resultant lease arrangements. Tenants negatively impacted by the pandemic should pursue good faith negotiations framed by the Code’s intent and principles, regardless of eligibility to the mandatory aspects – Tenant Leasing Group can help with this. We advise and provide support in order to present evidence substantiating COVID-19’s current and future impact on tenant revenue, utilization of the leased asset, and operating cost. It’s this kind of representation that facilitates good faith negotiations and is part of securing favourable lease arrangements. Get in touch to see how we can help in this pressing time. Demonstrating a reduction in turnover must be evidence-based, but doesn’t necessarily require any given combination of documents. You just require relevant documentation that substantiates the reduction. This is where skillfull representation comes into its own. Such a proposition might constitute bad faith negotiation, a refusal to negotiate, or negotiating subject to an undesirable outcome – but ultimately these interactions need to be considered on a case-by-case basis. Tenant Leasing Group prides itself on our ability to secure favourable commercial positions for our tenants through diplomatic negotiation. If you’re in this situation and wondering what can be done about it – feel free to reach out for a chat. The answer to this question will vary on a case-by-case basis. Impacts of COVID-19 may warrant a reassessment of lease assets and liabilities, as well as overall property strategy. If you’re a tenant looking for support to make decisions factoring in business risk and chronic uncertainty at this time, feel free to get in touch. COVID-19 re-occupancy plans must provide for 4 sqm per person, 1.5-meter distancing, access constraints, and all current regulations. See the Safe Work Australia guidance on physical distancing, and for NSW-based tenants you can check out their summation of the Four square metre rule. Peak bodies in the retail industry have released a ‘Retail Recovery Protocol’, which describes steps to ensure employees and customers are COVID-safe in retail stores and shopping centres. There’s also state-by-state guidance for businesses including retailers, on support available and safety measures. For example, the NSW Government has published a COVID-19 Safety Plan, which businesses can register as a having implemented to become ‘COVID Safe’. Furthermore, there are safety plans by industry, which include retail. Businesses, especially eCommerce brands, need warehouses to organise their distribution, fulfilment and other logistics. So – how do you go about leasing a warehouse for your business? E-commerce is booming – from meal kit services and online groceries to fashion and apparell brands, wine and liquor delivery, electronic goods retailers, homeware & furniture, and more – and smart founders, owners and senior executives are making sure they find the warehouse lease arrangements that support their bottom line. It’s not all about the biggest, newest sheds. Negotiate a rent reduction on an existing lease, rationalise your warehouse footprint to maximise efficiency, or relocate a strategic inner-city, suburban or regional site with better terms. Tenant Leasing Group is looking to work with new and established e-Commerce businesses who want to take advantage of the incentives and site opportunities on offer. We’re here to help businesses minimise warehousing costs and improve supply chain efficiency. How do you find the ideal property for your business requirements? For example, the ideal retail location, or the warehouse you need in order to expand your distribution operations. From establishing lease requirements to issuing market briefs, assessing property submissions from agents and conducting inspections, there are crucial steps businesses in Australia should follow in order to run an effective search process to find a site fast. 1. Establish your lease requirements Define what your business need from a property in terms of location, zoning, usage, features, rent and lease term. 2. Develop a real estate brief A good brief expedites the search process and makes sure you receive property submissions that are tailored to your requirements. 3. Issue the brief to market Being able to leverage beneficial, long-term relationships with agents, access lease property data and off-market opportunities is a massive advantage. 4. Compile a long-list Compile a longer list of suitable properties, including off-market opportunities. 5. Decide the short-list Review and select three to five of the most suitable properties. 6. Conduct inspections Go out to sites and make inspections of short-listed properties. 7. Create competitive tension Manage relationships with property stakeholders including agents and landlords to optimise your negotiating position. 8. Enter into lease negotiations for the properties you want Whether you’re looking for an office, retail store, pop-up shop, warehouse, sublet, or other business property – Tenant Leasing Group can help with site search. We have 50 years’ experience finding the best retail, office and warehouse sites for business tenants. How do you find the best industrial & logistics sites available for lease or purchase? Whether it’s a well-located warehouse you need for distribution, a production site, or a mixed-use property that meets your business requirements: there are crucial steps businesses should follow in order to run an effective search process to find an industrial site fast in Australia. 1. Establish your lease requirements Define what your business need from a property in terms of location, zoning, usage, features, rent and lease term. 2. Develop a real estate brief A good brief expedites the search process and makes sure you receive property submissions that are tailored to your requirements. 3. Issue the brief to market Being able to leverage beneficial, long-term relationships with agents, access lease property data and off-market opportunities is a massive advantage. 4. Compile a long-list Compile a longer list of suitable properties, including off-market opportunities. 5. Decide the short-list Review and select three to five of the most suitable properties. 6. Conduct inspections Go out to sites and make inspections of short-listed properties. 7. Create competitive tension Manage relationships with property stakeholders including agents and landlords to optimise your negotiating position. 8. Enter into lease negotiations for the properties you want Whether you’re looking for a pure industrial site, mixed-use warehouse, other logistics property, for lease or purchae – Tenant Leasing Group can help with site search. We have 50 years’ experience finding the best value, best term industrial & logistics and warehouse sites in Australia. Get in touch. How do you find the best large format retail leases? Whether you are looking for a showroom or a large format site in a shopping centre or retail precinct: there are crucial steps businesses should follow in order to run an effective search process to find a large format retail site fast in Australia. 1. Establish your lease requirements Define what your business need from a property in terms of location, zoning, usage, features, rent and lease term. 2. Develop a real estate brief A good brief expedites the search process and makes sure you receive property submissions that are tailored to your requirements. 3. Issue the brief to market Being able to leverage beneficial, long-term relationships with agents, access lease property data and off-market opportunities is a massive advantage. 4. Compile a long-list Compile a longer list of suitable properties, including off-market opportunities. 5. Decide the short-list Review and select three to five of the most suitable properties. 6. Conduct inspections Go out to sites and make inspections of short-listed properties. 7. Create competitive tension Manage relationships with property stakeholders including agents and landlords to optimise your negotiating position. 8. Enter into lease negotiations for the properties you want Whether you’re looking for a pure large format retail showroom or mixed-use site for lease or purchae – Tenant Leasing Group can help with site search. We have 50 years’ experience finding the best showrooms and large format retail sites in Australia. Get in touch. Lease negotiation is part art, part science. The most important thing is knowing what your interests are as the tenant, and how to protect them. Businesses looking for a retail, office or warehouse lease are generally after lower rents, healthy incentives and good lease terms. Consider getting advice when you’re dealing with commercial landlords and their lawyers. And make sure your advisor represent tenants-only. When it comes to negotiating – once you’ve shortlisted the sites you want, it’s crucial to create competitive tension. The way you communicate with agents, landlords and other stakeholders is key to creating leverage and optimising your bargaining position. Then it’s about knowing how far to push negotiations while protecting your interests as the prospective occupier. Attention to detail is vital: make sure you have a comprehensive knowledge of property contracts and perform due diligence to ensure legal compliance. Next step is closing the deal. This involves liaising with the landlord’s lawyers in order to finalise documentation, sign and settle. At Tenant Leasing Group we’re tenacious negotiators with 50 years’ experience securing the best lease deals for retail, warehouse & industrial tenants. Our advice is conflict-free: we are dedicated solely to tenants’ interests – we’re on your side. To get a better idea of lease costs and off-market property opportunities, get in touch.