Be a Lone Wolf, or Join the Pack
Collusion by businesses will be the key to surviving this business crisis. Benevolence is important but so is helping those who can help you. My network has grown stronger through this period, sharing leads, contacts and systems, helping those who help my business grow.
Sparing a thought for this conjures the same feelings for many as when they hear Bill Gates or Jeff Bezos’s wealth dipping by a couple of billions… but hear me out.
In the context of the Commercial Property Industry we’re seeing collusion like never before:
- The ACCC is temporarily allowing retail tenants to share information relevant to the negotiations with their landlord
- REIT Landlords are flexing their muscles in the media and on webinar panels, uniformly marching to the same beat of the drum, controlling the narrative
- SME’s (Small & Medium Enterprises) are being collectively represented by a Code of Conduct, ensuring they’re all afforded mandated savings from landlords
But spare a thought for the businesses with turnover greater than $50m who aren’t entitled to Code mandated rent savings, waivers or deferrals…
Where can they turn?
Before you get out your small violins, this category of business has many mouths to feed and shareholders to please. They’re likely to make significant contributions to the unemployment rate, especially when Jobkeeper finishes. According to the ABS, 45% of large businesses (employing 200+) have registered for JobKeeper, which is a fair example of the pain they’re suffering.
REIT Landlords are stonewalling large corporations when they request rental assistance. They’re being asked to provide more supporting financial information than the ATO requested for JobKeeper. This simply doesn’t make sense.
Just as the Property Council of Australia hosts networks of major landlords so that their response is united, so too should tenants be colluding. This is why collusion is key- but how can you start colluding?
Here’s how… Tenant Representatives!
Yes I know that’s self-serving but… the more data we have, the better we can fight against the bullies of real estate. And I’m not just talking about any Tenant Representatives – I’m referring to Independent Reps who refuse to ever represent landlords. Why? Because they won’t be afraid to bite the hand that feeds them when this tenant market is eventually over.
The disparagement in the value of an occupied Commercial building vs. properties with vacancies is going to be increasingly apparent. Landlords will secure tenants at any cost – rising incentives and decreasing rents will be experienced for the next 18 months at least.
You won’t benefit if the wins aren’t shared.
Collusion is key- so contact us now!
Tenant CS is an independent Asia-Pacific-based commercial tenant representation company. We help our tenant clients to source suitable premises and to negotiate the terms and conditions of their lease agreements.
We have offices in Singapore, Sydney and Melbourne, and are a part of a global network of tenant advisors, which thus means we can service clients all around the world! Contact one of our team members today to find out how we can help you.