12 Oct 2018
The past few years have been pretty tough for commercial landlords. The post mining boom slump saw commercial vacancy rates reach their highest level in 22 years in late 2017. With improved economic conditions on the horizon, things have definitely improved in the last 6 months or so, but our commercial vacancy rates are still amongst the highest in the whole country.
Competition for tenants is still as fierce now as it has ever been. In fact it’s been a combination of new office fitouts, floor subdivision and leasing incentives that have lured new tenants into buildings and helped kickstart the recovery.
This means that if you’re fitout isn’t up to scratch then you’re going to lose out to someone who’s been willing to put the time and effort into making their property as attractive as possible. It’ll also means that you’re in danger of losing your existing tenants to someone that can offer them better facilities.
What To Focus On
Obviously, the general condition of the entire property should be the first thing you look at. Making any necessary repairs or renovations is vital first step.
That being said, each commercial fitout is different, but if you’re dealing with an office/mixed use type of space then there are several key areas that you can focus on to make your property as attractive as possible.
Common Areas: The shared spaces in your building will shape they type of tenants you’ll be able to attract. Smaller businesses will be attracted by great open plan and communal facilities like co-working spaces or an open-plan cafe in which to casually meet clients away from the standard office area.
On the other hand, larger corporate tenants might put more value on an impressive reception area and concierge surface. Think carefully about your target market and plan your fitout around that.
Shared Facilities: it’s almost impossible to overstate the importance of having high quality shared facilities (such as toilets and bathroom. Tenants don’t want the impact of their own fitouts to be undermined by shabby or substandard facilities that are embarrassing and inconvenient for both staff and clients.
Adding additional shared facilities like bike storage areas and showers can also help to give you the edge over the competition.
We Can Help
The darkest days for Western Australia commercial real estate might be over, but if you want to be properly able to take advantage of the coming economic recovery then you’ll need your commercial fit out to be as attractive as possible. As WA’s leading commercial construction and design firm, we can deliver the building works or renovation projects that you need to get a vital edge in this highly competitive environment. Get in touch with us today to find out more!
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