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Commercial real estate portfolio management – are you asking yourself these questions?
Commercial real estate portfolio management – are you asking yourself these questions?
13 Jan 2020| News |
790 words

We’re often asked about common pitfalls in commercial real estate portfolio management, so we’ve compiled some key questions you should be asking.

Whether you rent or own, your commercial real estate is likely to be a critical part of your business, not to mention one of your largest expenses. However, many businesses lack the skills or resources to manage their commercial real estate portfolio effectively. That’s where TMX can help. We specialise in portfolio management, helping businesses to maximise the value of their commercial real estate.

Outgoings

Is your landlord complying with their outgoing expenditure obligations? Do you undertake a comprehensive review of your landlord-supplied documents, including annual outgoing reconciliations and budgets? Depending on the type of lease agreement you have, you are likely to be paying for outgoings such as maintenance and repairs. TMX helps clients scrutinise these costs and, where necessary, we’ll negotiate with your landlord to minimise costs or maximise business value.

Capital expenditure

Are you absorbing your landlord’s capital expenditure obligations? At TMX, we have seen instances where capital expenses were incorrectly passed on to tenants, either as misplaced outgoing expense items or through sub-optimal building conditions. Your building should be fit for purpose, and operating in accordance with the Lease. TMX’s commercial real estate and asset management specialists can negotiate on your behalf to ensure that you extract the greatest possible value out of your commercial real estate assets and that the landlord delivers on their capital expenditure obligations.

Rent

Does your service provider focus on more than just your first year’s rent? Do you review your annual rent review structures or contest market rent review opinions? TMX’s team of commercial real estate experts will represent your best interests through the life of your Lease, consistently working to achieve the best outcomes for your business.

Make good costs

Have you established what you make good costs will be if you decide to relocate? Were these contested at the time the lease documentation was agreed to? TMX specialises in all facets of commercial real estate management, including contract negotiations and procurement strategy.

Skills in negotiating key legal costs

Is your service provider skilled in negotiating Agreement for Lease/ Lease documentation? These agreements are vital in ensuring a successful operational outcome for your business.

TMX’s extensive experience in commercial real estate, procurement strategy and asset management, enables us to act as a true partner, helping secure the most competitive outcome for your business.

Value and transparency

Commercial property procurement incurs a transaction cost (even when the tenant negotiates directly with owners). Are you receiving value and transparency for your transaction cost? TMX’s deep expertise in commercial real estate and procurement strategy can give you confidence that your fee is delivering real value in a transparent manner.

Technical expertise and experience

Does your service provider have practical experience in asset management and managing commercial real estate leases? Do you have a commercial real estate partner that can assess and determine defects, ‘fair wear and tear’, structural faults, capital expense items ‘base building’ or provide guidance on what is reasonable?

Project management and development

Has your service provider delivered sophisticated and highly technical warehouse solutions or industrial facilities? Are they able to coordinate engineers, consultants and other third parties in order to resolve your technical considerations? The team from TMX brings specialist skills in automation, warehouse development and project management. Our team can unite these various functions in a holistic and strategic manner.

Future fitout

Do you have any fitout or works planned for the duration of your lease? Have you planned, designed, budgeted, or procured this scope? TMX’s project management team can help with the design and construction of your warehouse or industrial property. Our capabilities include warehouse automation, project management and warehouse development, and we are experienced in delivering these services across a variety of sectors.

Automation

What consideration has your business given to automation? TMX brings a unique combination of expertise in warehouse automation and commercial real estate management. Our holistic approach will ensure that your automation project takes into account a wide variety of complexities and business requirements.

Conflict of interest

Is your service provider truly independent? Some commercial real estate agents also represent owners, landlords and developers, meaning that they may have a conflict of interest. TMX is fiercely independent and can represent our clients with integrity.

Owning

Do you own part or all of your commercial property portfolio? We have deep expertise in all facets of asset management and portfolio management. We help clients with acquisition modeling, development feasibilities, build estimates and commercial property advice.

Need more help managing your commercial property portfolio? Contact TMX today for an obligation-free discussion.

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