Vision Formers

Refurbishment opportunities: good for the landlord or tenant....or both?

Alexander Graham Bell once said: "Sometimes we stare so long at a door that is closing that we see too late the one that is open."

Back in the 1990s, we realised the door was wide open to grow our company on the back of a recessionary trend at the time that saw office vacancies hit unheard of highs. We became a leader in the management of refurbishment at that time as we worked with like-minded landlords who seized the opportunity to upgrade their stock rather than lament their predicament. Now, in 2009, we're seeing it all again. Trends in office vacancies suggest we're heading for stagnation reminiscent of that experienced in the 1990s, although hopefully they won't soar to quite those levels. But as was the case then, opportunity is knocking for those who are smart - building owners who consider what they are going to do early will be ready to respond to tenant enquiry and make the best of the situation.

The trick is for the landlord to take a long view, provided they have the capacity, feasibility and vision to meet the demanding, bargain hunting, more-for-less, but otherwise good quality tenant. Current economic conditions also provide a unique opportunity for tenants who have a lease expiry in the next few years to give serious consideration to taking a long-term view and upgrading their accommodation arrangements. These tenants are in the perfect position to take advantage of this situation and use it to move into better quality premises, and influence building owner refurbishment works to meet their specific needs. In doing so they can provide a better environment for their staff, increase productivity and get all the benefits enjoyed by the bigger, more affluent corporates and government departments that occupy B plus and A grade buildings - yet they can do it at a much lesser cost in the current market.

But tenants looking to capitalise on the opportunities must think laterally and take good advice. The importance of working with the right consultant team to find the ideal space cannot be over-emphasised. Smart building owners are really upping the ante on what's out there. So while tenants can make an assessment on space and its fit with their organisation, the real value lies in the 'invisible' touchpoints - things like space efficiency, and the nuts and bolts of what's in behind the ceiling that will enable things like good environmental control and operating costs and which will truly deliver a more premium space without the hefty price tag.

The Building Intelligence Group has assisted with many of the largest and some of the smallest accommodation negotiations for tenants and landlords, helping them analyse the suitability of the space and what's needed for it to make the grade, minimise cost and risk, and explore innovative solutions and options which successfully bridge the negotiation gap. We built our reputation in the last recession, and think it might be time again to help landlords and tenants seize the opportunities that are once again available.

For more information on how The Building Intelligence Group can help you with your refurbishment or leasing requirements, contact me on phone 021 436 829 or email d.mann@tbig.co.nz