Retail property leasing is a complex and dynamic process that involves many factors and stakeholders. Retail tenants face various challenges in the current market, in this article we will outline what those challenges are and how our team of property professionals can you overcome these challenges.
Rising rents and occupancy costs
Retail rents have increased significantly in recent years, especially in prime locations and shopping centres. Over the 12 months to February 2023 annual retail trade in Victoria grew by 11%, double the 10-year trade and has now outperformed the national average since September 2021.
With online retail in Australia continuing to grow and gradually taking a larger share of the overall spend with consumers spending approximately $44 billion online over the past 12 months. Economic conditions have got more difficult, and Retailers are now starting to feel the impact of interest rates and higher borrowing costs and sales are being impacted.
These challenges can have a significant impact on the profitability and sustainability of retail businesses. Therefore, it is essential for retail tenants to manage their retail property leasing effectively and strategically.
Regulatory uncertainty and compliance
Retail tenants need to comply with various laws and regulations that govern retail leasing, such as the Retail Leases Act 1994 in NSW. However, these laws can differ from state to state and may change over time due to legislative amendments or court decisions. Retail tenants also need to be aware of their rights and obligations under their lease agreements, such as rent reviews, outgoings, maintenance, repairs, alterations, subleasing, assignment, termination, and dispute resolution.
How can BDC Property help you with these challenges?
BDC Property Partners is a Leading Retail Property company that specialises in helping retail tenants achieve their business goals through optimal retail property leasing solutions.
We offer a range of services that can assist retail tenants with:
Mid-term lease negotiations
We can help you negotiate favourable lease terms and conditions with your landlord during the term of your lease such as rent reductions, incentives, extensions, or variations. In some cases, a Mid Term Lease negotiation is possible as the sustainability of your Lease isn’t viable for you or the Landlord. We can also help you resolve any issues or disputes that may arise during your lease.
We can help you renew your lease at the end of your term or exercise your option to renew if applicable. We can advise you on the market conditions, rental benchmarks, lease incentives and other factors that may affect your renewal decision. We can also help you negotiate the best possible renewal terms and conditions with your landlord.
Occupancy costs management
We can help you manage your occupancy costs effectively and efficiently by reviewing your lease agreements, outgoings statements, turnover rent calculations and other relevant documents. We can also help you identify any errors or discrepancies that may result in overpayments or underpayments of rent or outgoings.
We can help you obtain lease abatements from your landlord in case of unforeseen events or circumstances that affect your ability to operate your business from your premises, such as natural disasters, pandemics, government restrictions or landlord breaches.
By engaging BDC Property Partners for your Retail Property Leasing needs, you can benefit from our:
We have extensive knowledge and experience in retail property leasing across all sectors and markets in Australia. We understand the challenges and opportunities that retail tenants face in the current environment and we can provide you with tailored and practical advice that suits your specific needs and objectives.
We have strong relationships with landlords, agents, lawyers, and other industry professionals that enable us to access relevant information, negotiate effectively and achieve favourable outcomes for our clients and we strive to deliver exceptional service and results.
We have a creative approach to problem-solving and we can think outside the box to find innovative solutions for our clients. We are not afraid to challenge the status quo and we can leverage our market insights and industry trends to help our clients stay ahead of the curve.
If you are a retail tenant looking for a reliable and professional Retail Property Leasing company, look no further than BDC Property Partners. We can help you overcome the challenges and maximise the opportunities with your retail property leasing.
Find out more about how we can help you here.