Save money and reduce risk – understanding commercial property, the multiplier effect
11 September 2018,
by Dean Croucher
New Zealanders often pride themselves on our DIY culture. Remember the Mitre10 ad from about 10 years ago, with the kids in the sandpit?
Apart from being a classic piece of advertising, the banter is typical of our “can-do”, “give it a go”, “can’t be that hard” philosophy! While the spirit of DIY is commendable and there is a place for it in both business and personal life, you often can’t beat hard-earned experience and technical expertise.
Like any endeavour, those of us who specialise in a particular profession, hone our craft and knowledge over time. This first-hand experience and deep understanding of what works and what’s possible can often add significant value, save time and mitigate risk.
Leasing commercial premises is a prime example. Many New Zealand organisations take the DIY approach – can’t be that hard surely? Look at some options, negotiate a deal – “I do deals everyday”.
Those that are perhaps a bit busy will supplement their own skills and time by using an agent/broker to source options and do the “leg work”. And they may even ask their lawyer for some advice on the lease and any contract related stuff. In my experience most business people enjoy looking at property and getting involved in a project – as it is a bit of light relief from their day job
So what’s wrong with this you’re probably asking?
Despite good intentions, these strategies often come undone as the complexity of a property transaction can mean businesses:
Don’t really know what they need for their business (and can over or under specify).
Don’t’ get the best deal as they don’t know the market or the right questions to ask.
Take on a lot of financial cost that they didn’t foresee.
Inherent significant contingent liabilities that eventually impact on their business.
The TwentyTwo Multiplier Effect infographic is a simple way to show how the fine tuning of several elements of a transaction can result in significant savings and reduced risk – two key things to sing about at your next Board meeting.
Area, rent, lease term, furniture and fit-out, lease end/exit obligations, landlord works and landlord incentives – these are just some of the key elements you need to be considering when looking at moving your organisation or setting up a commercial space.
Invest in independent advice. Commercial property experts have honed experience, industry knowledge and can take the time to really understand what it is your team needs now and potentially in the future.
Loves anything blue. Avoids routine and making plans. Dreams of playing golf on the senior tour. Should have been a chef or writer. Fond of chardonnay and food (any kind).
Dean is one of NZ's leading property advisers with 25+ years’ consulting experience acting for major tenants and owner-occupiers. He specialises in property strategy, tenant representation, project leadership and major transactions. He also continues to provide peer review advice across all major projects.
Last month, we undertook market research to gauge the state of organisations’ thinking on their office requirements and workspace post-COVID-19 to give us a better understanding of how businesses are reacting to the crisis from...
As businesses put emergency measures in place to cope with the rapid economic impact COVID-19 is having on all sectors, one of the areas of focus will be reviewing large fixed overhead costs such as...
Commercial property expert Dean Croucher shares his insights on the buoyant Wellington CBD office market and the best ways for tenants to tackle their next property move using “strategic sourcing principles” rather than being...
Recent research by Colliers highlights increasing risk that Auckland CBD office tenants will have fewer options to choose from in the future as vacancy levels sit at the lowest level seen (since records began in the mid-1990s).
As part of our ongoing partnership with NZ Police, TwentyTwo (Dean Croucher and Rob Campbell) were engaged by Annabel Bayes (Strategic Property Adviser with NZ Police) to the lead the procurement of a new workplace for Auckland Police in Auckland City to replace the current Auckland Central Police Station at Cook Street/Vincent Street.
I recently saw an article online (from a friend of mine (Glenn Blumenfeld) who runs a similar independent property advisory practice in Philadelphia) talking about the impact of Artificial Intelligence (AI) on the property markets – pointing out that the uptake of AI will replace many of the traditional processing/research roles in professional services firms (legal/accounting) – who have been the largest occupiers of CBD office space in the past.
With 2017 coming to a close, here’s my take on some key markets, our diversifying client base, the corporatisation of the co-working space, the shift in corporate capital away from bricks and mortar and our...
Marketing Communications Coordinator (Part Time/Wellington or Auckland based). TwentyTwo is a leading professional services practice providing strategic property advice to government and corporate clients, from offices in Auckland and Wellington.
TwentyTwo has recently been appointed to the Government Property Panel, an appointment that recognises our deep understanding and experience of working for the main Crown/Government agencies over the last 27 years.
At the recent Property Institute Government Property event in Wellington, TwentyTwo’s Dean Croucher joined David White from Government Property Group, Peter Dow (deputising for an unwell Maurice Clark) and Steve Maitland from Colliers to discuss...
Team TwentyTwo celebrated the end of another fantastic year last weekend by heading up to Auckland to see Coldplay live at Mt Smart Stadium! The previous night, our team got together for a few quiet red...
We're passionate about the success of Wellington and its contribution to the economy. Our business contributes to that success by helping organisations make better property decisions that help them unleash their potential.
In Part 3 of a series of blogs on the New Zealand Green Building Council, we review the future of NZGBC and what it offers organisations, particularly tenants and owner-occupiers…The NZGBC is 10 years...
Following Part 1 published last week where we introduced the NZGBC and outlined our early involvement and renewed commitment to the Council, Part 2 gives a brief history, along with our experience of tenant/end...
TwentyTwo has recently renewed its commitment as a member of the New Zealand Green Building Council (NZGBC).And since World Green Building Week is all set for 21-27 September, we’re marking the occasion with a series of three blogs over three weeks to highlight NZGBC’s role in working to improve the quality and sustainability of NZ properties, as well as our involvement over the years.
Great to see some real progress on site last week with two of our projects…
On Monday morning, I attended the ‘ground breaking’ ceremony for Cuba Central – the new Creative Technologies and Arts Centre being developed by Willis Bond for WelTec and Whitireia.
On 24 September a number of clients joined us to celebrate the start of our sponsorship for the 2014/2015 season with Andrew Durante, Captain of the world famous Wellington Phoenix!
Andrew was a real hit and...
A robust, well-researched white paper released by Gail Corder Fischer of US tenant representation business Fischer explains how corporate tenants might be “leaving more money than they realise on the table when they place their property portfolios in the hands of large real estate brokerages that serve multiple stakeholders”.