Asset focus
Commercial Assets
Retail, office and mixed commercial space assessed through tenant economics, lease quality and the relevance of the building to its surrounding market.
Scope of research
Understand the use. Then the economics.
- Retail units, neighbourhood commercial properties, offices and commercial components of mixed-use buildings.
- Assets where tenant retention, leasing, physical improvements or a change in positioning can be tested against a realistic budget.
A research focus, not a statement of owned or managed assets.
01 / Demand
Who needs this space?
For retail, examine the catchment, visit purpose, access and the economics of the businesses serving those customers.
For offices, examine tenant industries, commuting, usable space and competing supply. Visible footfall or an attractive address is only part of the evidence.
02 / Operating fundamentals
What the records need to tell us.
Lease-adjusted effective income
Read base rent alongside rent-free periods, fit-out contributions, turnover clauses and recoverable service charges.
Vacancy and lease expiry profile
Identify the cost of empty space and the concentration of expiries, breaks and renewals over time.
Tenant concentration and collections
Assess reliance on individual occupiers and distinguish billed income from cash received.
Reletting and refurbishment cost
Include brokerage, incentives, fit-out, approval work and income interruptions in the total capital requirement.
03 / Practical improvements
A plan that can be delivered.
- Adjust the tenant mix around complementary uses and the needs of the surrounding area.
- Improve access, visibility, building services and unit configuration where tenant demand supports the expenditure.
- Stagger lease events where feasible, strengthen arrears management and set a funded reletting plan.
04 / Before the next step
Questions worth asking.
01Can the intended tenants trade or work successfully here at the proposed total occupancy cost?
Record the supporting documents, responsible party and any unresolved assumptions. This question should be answered for the specific property before advancing the assessment.
02Which lease obligations transfer with the property, and which remain subject to consent?
Record the supporting documents, responsible party and any unresolved assumptions. This question should be answered for the specific property before advancing the assessment.
03Is a change of use or layout physically and legally feasible?
Record the supporting documents, responsible party and any unresolved assumptions. This question should be answered for the specific property before advancing the assessment.
04What happens if a major tenant leaves before the improvement plan is complete?
Record the supporting documents, responsible party and any unresolved assumptions. This question should be answered for the specific property before advancing the assessment.
Bring a specific opportunity