By Kyle Swain, Retail Director – Australia and New Zealand, Lpc Cresa
Poorly managed leases can easily result in unnecessary costs running into tens of thousands of dollars over the term of a lease. That’s money going into the landlord's pocket instead of yours. The larger the portfolio, the higher the risk of leaking potential profit.
Substantial savings can be achieved over the life of a lease through the initial negotiation of the commercial and operational terms by an experienced tenant representative. A specialist with a detailed understanding of retail leases and the legislation governing them in each state will apply this knowledge, along with their property market and retail industry intelligence, to achieve the best possible outcome for their client - the lessee.
The value of a lease as an asset to the business however can be further increased through ongoing proactive and strategic lease management and administration.
Improving bottom line performance from a single lease, or across a portfolio of leased shops, by identifying and activating savings in occupancy costs most certainly requires a specialist’s skill. It also requires access to clean, accurate and timely data that identifies critical dates, lease events and risks, as well as opportunities to improve your lease position.
Astonishingly, very few retail businesses proactively manage their leases at all once they’re signed. A fundamental shift is required so that retail tenants treat leases as an operating cost and manage them with the same level of attention as other cost lines on their P&L statement.
Partnering with a company like Lpc Cresa who has significant retail leasing expertise and an industry leading in-house, cloud-based technology platform will help you manage your portfolio of leases effectively and free up internal resources to concentrate on other vital cost areas that deliver improved net profit and asset value.
Lpc Cresa’s lease management solution ensures:
1. Accurate and accessible data
We conduct an initial set-up and data extraction by skilled professionals knowledgeable in lease legislation specific to each state and territory. With a reliable management solution established, we then issue timely alerts of upcoming critical dates and lease events.
2. Portfolio optimisation
We provide continual oversight to identify potential risks and implement specific actions or negotiation strategies around critical path and general lease events such as lease renewals, market rent reviews, etc.
3. Timely actions
We proactively manage milestones and tasks to ensure our clients have maximum leverage in transaction negotiations to achieve the best possible outcomes for their lease portfolio, and business.
If you think your business can benefit from our effective lease management solution, contact us for an obligation free discussion.