Don't Forget these 5 Property & Workplace Considerations

What not to lose sight of when considering your occupancy strategy.

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Given the current climate of the Brisbane office leasing market, tenants are encouraged to review their current lease obligations and actively seek out reductions in their total occupancy cost.

With commercial opportunities and deal structure front of mind, here are five important property and workplace considerations that tenants often forget;

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1. Future Lease Strategy

With high vacancy levels still driving tenant-friendly deal structures, tenants are compelled to focus on commercial metrics and reduce their total occupancy costs. Tenants and their advisors should focus on extracting every cent from a prospective deal and delivering a financial win to the business.

One benefit of current market conditions is the opportunity to upgrade your premises to a location that may previously have been unaffordable.

It’s important to lock in option periods with fixed reviews to protect your future occupancy strategy.

What will the market conditions be like at the end of your initial term?

Could your company afford another lease term with significantly reduced rental abatement?

What effect would downgrading the quality of your office have on your brand and ability to attract and retain staff?

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2. Landlord Relationship

Throughout the accommodation brief and shortlisting process, it’s easy to assess buildings purely on their physical attributes and commercial opportunity.

Many tenants overlook the suitability of the landlord or building manager.

Focus on a landlord’s willingness to partner with your business over the lease term.

What are the differences between institutional and private landlords?

Has communication been regular and transparent?

Does the landlord value long-term relationships?

Can the deal structure support future growth?

Can the landlord accommodate you elsewhere within their portfolio?

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3. Building Presentation

Current market conditions allow significant savings across asset classes.

Ask whether the building reflects your brand and market position.

Remember this will be your company’s home for the duration of the lease.

Upgrading quality while maintaining occupancy costs

Maintaining quality while reducing occupancy costs

Reducing quality to significantly reduce occupancy costs

Building design, location, lobby, common areas, surrounding amenity and tenancy mix

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4. Floor Plate Geometry

When designing a workplace, consider the floor plate and how it influences layout and occupancy efficiency.

Will your company fit on one floor?

Is the building centre core or side core?

How will the floor dimensions affect workplace efficiency?

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5. Natural Light

Natural light is a significant contributor to employee wellbeing and the overall workplace experience.

The best commercial deal may not provide the best access to natural light.

Define your workplace strategy before beginning lease negotiations and contact PCG for independent advice.

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