Here are a few of the most commonly asked questions, to help you get a bit more information on tenant advocacy, Tenancy Matters, commercial office strategies and the Melbourne commercial property market.
What is a Tenant's Advocate?
A Tenant's Advocate is an independent licensed Real Estate professional who works exclusively for Tenant's to help inform and carry out their property strategy. Tenant's Advocates DO NOT take commissions from Real Estate Agents representing commercial landlords, and are paid for their services by the corporate tenant exclusively. A Tenant's Advocate therefore provides advice on a purely independent basis, assessing options evenly and providing recommendations based solely on their expert knowledge and experience, property attributes, market performance and current availability rates.
Do I really need a Tenant Advocate?
It comes down to how much knowledge and expertise you have of the commercial property market, and how much time you have available to get across it all. Property is complex. It is also a large financial and legal commitment for businesses at almost any stage. A great Tenant's Advocate should:
Provide you with a comprehensive analysis of your property requirements
Lead the search for a new premises for your company, including shortlisting and inspecting properties
Provide strong information supporting their recommendations, including specific building and tenancy information, comparisons and financial analysis, indicative fitout implications and make good expectations, in addition to keeping you fully briefed on the process at all points in the process
Negotiate the Heads of Agreement on your behalf, including securing an incentive at current market rates, appropriate amendments to other clauses as per your specific property needs and their expertise in this area to protect you both now and as the lease progresses
Manage the full process so that it saves you time and money and brings you comfort in your decisions around your property strategy
In short, they should take the stress out of the process, and leave you feeling fully informed and supported throughout the property search. It should result in achieving you the best deal available in the market for your property choice
Why should I use Tenancy Matters for my property matters?
Tenancy Matters has been working in the Melbourne market as a Tenant's Advocate for the last six years. In that time we have worked with countless clients to help them create and enact their property strategies. We have worked with many start ups, scale ups and establish companies, and love seeing our clients come back over the years, as they grow, relocate, re-brand and re-calibrate, taking us on this journey with them, as their bolt on property employee.
What services does Tenancy Matters offer?
We have a range of services that we can offer, from a full Tenant Advocacy service to a slim version of that support. Heads of Agreement and Lease advice for new leases, and renewal and rent review advice on resigning current leases. Tenancy Matters are always open to finding a way to help businesses into their new premises. We believe the most important thing is that businesses are informed and represented. Don't hesitate to get in touch, we are always up for a coffee and a chat.
At what company size does it make sense to have our own office?
Co-working spaces are abundant and are taking the stress off many small businesses, allowing them to have access to big company services, without any hassle. And that works well, until businesses reach a certain staff size. It is then that the economics of that model shift, and where taking on a lease can make more financial sense. Currently, it is our experience that this number is around 14 staff. Of course, this depends on your expected future growth and corporate strategy, access to capital for guarantees and fitout costs, and stability of staff and size. As part of our services, we help you create your property strategy and business case, ensuring the decision is right for your business now, and in the future.
How much office space do I need to take?
We usually recommend you start with looking at your projected growth over the lease term, and use the midway points projected numbers as a good place to start, in terms of square metres required. On average, we use a 10:1 square meter to staff ratio. So 16 staff members would require an office that is approximately 160sqm. This is an average estimation, and takes into account breakout and meeting room spaces.
When should I engage an Advocate?
A Tenant's Advocate can be engaged at differing points throughout the lease process, depending on the service and level of advice that you require. If new to Melbourne's leasing market, searching for your first office or taking a giant step up in size, we would suggest engaging us at the beginning of the process, so that we can help you develop the business case for your property search. Many of our clients are referral, or return clients who know the benefit of having an advocate working on their behalf, and the financial benefit and comfort that brings. That said, we are happy to work with clients at any stage through the process, to ensure you get the best advice along the way.
How long does the process take?
It really varies. Sometimes clients can be ready to take the move and find the perfect premises ready to be occupied within weeks, sometimes the process gets kicked off month's in advance of the current lease ending, to ensure a smooth transition. If you are weighing up renewal of a lease versus new space, we advise you start well in advance of the date on which you have to exercise the option on your current lease, so that you can make a well informed decision. We can also help you negotiate rent reviews on exercising an option, or work with you to negotiate make good and exit from your current lease as equitable as possible. The best advice we can give you is to start early, to ensure that you have the time on your side, when finding and fitting out your new office space.
What is the Melbourne commercial lease market like? I hear it is hard to get space right now.
Currently the Melbourne commercial lease market has low stock availability, resulting in low vacancy rates. This has made the market very tight in the last couple of years. However, this will be changing as more commercial developments come into completion in early 2020. The result, more movement by tenants, and more stock availability. It will make it both easier to find space, and competitive to secure space, as tenants from across the business spectrum take the opportunity to move. It should also mean competition for tenants by landlords, resulting in a good environment for incentive and competitive rents. Feel free to reach out to us to talk through where we see the market heading, and garner some information to help inform your property strategy.
property is complex
With Tenancy Matters in your corner, you are closer than ever to your new office. Be informed. Be prepared. Be represented.