At Lacey West, our dedicated commercial property management team works hand in hand with our leasing and sales specialists to ensure every asset is being actively managed, not simply maintained. In today’s market, passive ownership can often mean missed opportunities and ultimately lost income.
Over the past twelve months, we have worked with a number of landlords who previously self-managed their properties or had long standing arrangements in place. In many cases, these assets had not been reviewed against current market conditions for years. Through proactive management, detailed lease reviews and strategic negotiation, we have consistently been able to increase net returns while simultaneously strengthening the overall value of the asset.
One recent example involved a commercial property in Carrara. The owner had self-managed the asset for several years, with a national tenant in place, and felt the arrangement was straightforward and low risk. However, upon conducting a comprehensive “health check” of the lease and outgoings, we identified several areas of concern.
The rental rate was significantly below current market levels, and the recovery of outgoings was well below what is typically achievable for comparable assets. While these gaps can often go unnoticed over time, they can have a substantial impact on both annual income and long-term asset value.
After being appointed to manage the property, we undertook the upcoming option renewal negotiations on behalf of the landlord. Through a strategic and well supported approach, we successfully repositioned the lease, achieving a 53% increase in rental income. Based on prevailing market yields, this uplift translated to an approximate $1.5 million increase in the property’s value.
While this is a strong result, the key takeaway is not just the outcome, it is the process. Regular reviews, informed advice and proactive management ensure that your investment performs as it should, without the need for large, reactive adjustments down the track.
If you are unsure whether your asset is keeping pace with the market, or if you simply want a second opinion, our team would be happy to provide a complimentary property health check.
A small review today could make a significant difference to your income tomorrow.