In May, Tenant CS partnered with the German-Australian Chamber of Industry and Commerce to deliver a workshop around achieving commercial rent savings and higher incentives. During the session, Matthew Pollak and Sophia Bockisch shared some great insights on what to do if you're rethinking your lease.
If you missed it, we've included a link to the video (above) and a quick recap of key learnings.
Efficiencies gained through leaner workforces and maintaining remote working arrangements can potentially reduce space requirements by 60%. However, this figure is offset by various factors which may increase a business's space requirements by up to 40%, including:
Keeping all this in mind, overall, the average company needs 20% less space today then they did pre-COVID. And this potential space-saving can really improve a business’s bottom line.
Off the back of businesses reducing their space requirements and some companies closing their doors, by Q4 2021, Sydney and Melbourne vacancy rates are predicted to spike to 9.7% and 9.9% respectively. Commercial rents across Australia and New Zealand will also fall, while incentives will increase to entice quality tenants.
Watch the video above for further details and assumptions, or contact the team at Tenant CS for market breakdowns in other locations.
There are several savings scenarios that commercial tenants can take advantage of in the current climate:
Are you looking to increase your commercial rent savings or incentives?
Having a tenant rep on your side is more valuable than ever. Over the last few months, Tenant CS collectively achieved millions of dollars worth of savings for our clients. Make the most of the office rental crisis, contact our team today for a free rent review!
View the original video post here.