Aussie Shops & Sheds Are Your Oyster: Property Leasing in 2024
Tenant Leasing Group (TLG) is an Australian commercial property advisory specialised in sourcing and lease negotiation for warehouse, office, and multi-site retail.
As we step into 2024, the Australian commercial industrial, retail, and office property landscapes are undergoing shifts that demand attention from both existing occupiers and those eyeing new leasing opportunities.
Economic Dynamics and Rental Trends:
We know you know already – but the implications of sustained inflation and high-interest rates are still reverberating through the economy, with noteworthy consequences for tenants over the next 12 months.
In their Australian Horizon 2024 report released in November, Knight Frank were optimistic that industrial rents in Australia still have further to rise, citing the ability of businesses to pass higher costs onto consumers, and the relative cheapness of Australian cities globally. However, our assessment aligns more closely with our industry peers TenantCS, who predict industrial rents to decline.
As economic uncertainties persist and employment growth slows, vacancies are expected to increase, as are subleases, potentially leading to eased rents and the availability of robust incentives for savvy lease seekers. Working closely with a professional team, who know what you’re after and how to set up the necessary introductions, can be a great investment.
Surplus Space Subleased – Avenues for Alternatives:
There is a surfeit of industrial and office sublease floor space coming onto the market, offering economic alternatives for both actual and potential occupiers. This represents both an attractive opportunity for other tenants seeking cheap space fast, as well as a solid source of income for the occupying leaseholder. Learn more about subleasing options.
We are working with various corporate groups who are seeking to do off-market lease transactions and sublease or surrender surplus showroom and warehouse space of considerable amounts.
Subleasing can give flexibility to your business in the instance that you are downsizing or have fluctuations in space requirements. Last year, we helped homegrown eCommerce startup Koala consolidate $1.8 million in per annum savings by subleasing part of their warehouse in Sydney.
Where are you going in 2024?
For businesses with leases expiring in 2024, strategic considerations are paramount. Understanding your options – from lease renewal to renegotiation, subleasing, lease disposal, or relocation – empowers businesses to make informed decisions aligned with their growth strategies.
Generally, when leasing as a commercial tenant, everything is negotiable – provided you and your business: plan and start early (12-18 months before expiry); ask about strategic help (especially for understanding the clauses in your lease, and for negotiating with a landlord); and remain compliant. Read more about what to do if your lease is coming to an end.
Wherever you are headed – partner-up:
Amidst the complexities of the current property landscape, businesses looking for support with warehouse, retail, or office leasing requirements can turn to the team at TLG. Spanning over 50 years, our commitment to professional, conflict-free advice for non-residential occupiers is matched only by our sector expertise in retail, industrial & logistics (warehouse), large format retail (showroom), and head offices.
Any time we work with someone, we take a holistic approach, considering every salient aspect of their business – from the bottom-line up. We look at property deals in this context, evaluating other commercial obligations and requirements against any given site and lease agreement.
From site sourcing to lease negotiations, transaction management and fit-outs to portfolio roll-out and project management, we work with exclusive partners to offer a one-stop-shop for industrial and retail property needs.
Our strategic collaborations with Hunterford Property Group – led by industry veteran Paul Ford – and MCD Australia, leverage unrivaled industrial market knowledge, and client-side project management expertise.
Happy New Year!
To conclude, Tenant Leasing Group (TLG) wish our clients, industry partners and future collaborators a great start to 2024.
We are excited to make the most of opportunities in the retail and industrial sectors and continue what we do best – expert advice and lease negotiation.
Look forward to speaking soon!
(+61) 418 961 045
Tenant Leasing Group (TLG) is a commercial property advisory specialised in sourcing and lease negotiation for warehouse, office, and multi-site retail.
Impeccable service with an entrepreneurial spirit. Trusted for 50+ years’ across Australia & New Zealand.
We do property so you can do business growth.