Blog

  • Darlinghurst Suburb Guide | Real Estate Blog – Niche Portfolio
    Wednesday, October 15, 2014
    Highlights of Darlinghurst Darlinghurst is an inner city suburb of Sydney.  Close to Sydney’s Central Business District, it is one of the m...
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  • Paddington Suburb Guide | Real Estate Blog – Niche Portfolio
    Thursday, September 25, 2014
    Paddington, Sydney living: the highlights  The sought-after suburb of Paddington, nicknamed “Paddo”, is located a mere 3km from the S...
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  • Bondi Beach Guide | Real Estate Blog – Niche Portfolio
    Wednesday, July 02, 2014
    Highlights of Sydney’s Bondi Beach Sydney’s Bondi Beach is located on Sydney’s Eastern Suburbs and it’s the most famous beach ...
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  • Top 5 renovation tips that will increase the value of your property | Real Estate Blog – Niche Portfolio
    Thursday, June 12, 2014
    The competitive Australian property market can seem like a jungle - everyone is looking for the best way to add value to their home without breaking t...
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  • DIY tips to prepare your house for sale | Real Estate Blog – Niche Portfolio
    Monday, June 02, 2014
    Do you want your home to stand out from your competitors?  If you are serious about putting up your home for sale, it is vitally important that y...
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  • Rental home hunting? Follow these 5 simple tips for a smooth transition | Real Estate Blog – Niche Portfolio
    Wednesday, May 14, 2014
    The rental property market is highly competitive at the moment, especially as more and more people are choosing to rent rather than to buy.  Look...
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  • Escape into your own private oasis | Real Estate Blog – Niche Portfolio
    Wednesday, April 30, 2014
    With all the chaos of our modern world, we all need a private haven to escape to. Nature has provided us with one of the most decadent luxuries the hu...
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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
    Monday, March 17, 2014
    With interest rates at a record low, and high demand for limited housing stock, Sydney’s property market is set to see an increase in property d...
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  • Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio
    Friday, February 28, 2014
    Buying a rental property can be a very financially rewarding decision. However there’s no denying that it involves a lot of research beforehand....
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
    The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years...
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More articles »

Sealing the Deal on Commercial Property Management | Real Estate Blog – Niche Portfolio

Monday, May 13, 2013

Our blog this month is all about commercial property management in Sydney. For those readers interested in acquiring or leasing commercial property, we’ve put together a short summary of what commercial property management entails and some pointers on what to expect during negotiations; whether you own the property or are leasing.

Commercial property can include anything from mixed residential commercial spaces, like live-in shops, to heavily manufacturing buildings or industrial parks.

Much like the residential sector, commercial property management is subdivided; with commercial property managers specialising in designated markets. This makes it easier for businesses to contact the right type of commercial property management firm for their business needs.

Again, similarly to the residential property market, the commercial market is transient. There are ups and downs in all sectors of commercial property management. The subdivision of these sectors allows for agents to become more knowledgeable about their sector and, therefore, to provide more informed commercial property management services to clients.

Perhaps what’s most surprising to new entrants in commercial leasing arrangements is the length and scope of negotiations that need to take place before contracts are finalised. While it might strike some as common sense to shop around before committing to any type of leasing arrangement, in commercial property, it is not unusual for tenants to start looking for spaces up to a year before their current lease expires. This prolonged perusal and negotiation period heightens the risk by lessors that lessees will back out of agreements at the last minute and also puts the bargaining power in the hands of lessees.

These negotiations are best mediated by commercial property management professionals and should cover the following:


•    The rental rate; how much will every square meter of the commercial property cost per annum?
•    What kind of signing incentives can you offer to the lessee? Will there be a rent free period while the client moves in? etc.
•    When the lease commencement date and what is the term of the lease?
•    Are there any in-built rental increases or further concessions in terms of pricing?
•    What is the bank guarantee required?
•    How will responsibilities for the commercial property be divided between lessor and lessee?


The Real Estate Institute of NSW recommends that the above details be worked out and a “Heads of Agreement” signed before moving on to more detailed negotiations with potential tenants. As previously stated, these negotiations are best mediated by commercial property management agents or property lawyers as property agreements are highly technical and notoriously messy when mishandled.

Niche Portfolio can help seal the deal on commercial property management. For more information on commercial property management in Sydney, call (02)9362-0740.