The current economic conditions have seen a rise in vacancies for many property owners and in response, Spire Property Management has implemented some innovative strategies to attract tenants to their clients’ buildings.
Structured rental deals
Sean Paul, Executive Director of Spire, explains that Spire have implemented structured rental deals that are tailor made to suite each tenant. Paul says that it is important to recognize that different tenants have different cash flow scenarios and Spire creates rental agreements that fit in around these scenarios.
“For example, we offer tenants a rental free period during their lease, however, this may not necessarily be at the start of the lease, but can rather be structured around a period when the tenant knows that their cash flow will be minimal – perhaps over their annual shut down.”
Paul goes on to say that attracting new tenants to a building is key to minimize vacancies but that Spire also recognize that moving a business comes with massive additional costs – from the moving company itself, to the setting up of a new telephone lines, reinstalling the computers, new signage, shop fit-outs (if retail tenants) etc.
“Because of these costs it can be difficult for some tenants to then also have to find money for their deposit and the first month’s rent. We can then structure a deal whereby we phase in the expenses and for example, the deposit would then be due later in the rental period and not upfront. We can also look at a contribution to the fit-out costs for the premises.”
Space optimization service
Another way that Spire are assisting tenants to minimize their costs is through the space planning service that they offer, which helps tenants to reduce the amount of space that they occupy and in turn reduce their rental.“Clever space planning and an efficient use of space help to reduce a tenants overheads,” says Paul.
“Rather than a tenant rent far too much space and have them move after a few months due to their high rental, we prefer to place a tenant in a perfectly fitted space that then sees them remaining in that building for many years.”
Occupancy cost reduction through sustainability
“Additional measures that are being implemented in Spire managed buildings are sustainable retrofits, such as lighting and solar installations,” explains Gregg Huntingford, CEO of Spire Property Management.
“Our unique sustainability division will go into a building and assess what green measures are currently in place (if any) as well as those that can be implemented. We then advise the client on these measures and their costs and thereafter can run the project at competitive rates.”
“Sustainable measures within a building lead to occupancy cost reduction for the tenants. Once again engendering a long term commitment to their lease.”
“Such deals also have to take into account the property owner’s needs, the building itself and the node. All items combine to create a unique mix that Spire always seeks to optimize for all concerned. We believe passionately in win: win outcomes,” says Huntingford. “We have specific vacancies that allow us to apply such thinking, and our teams are keen to do deals.”
“Property rental deals have traditionally been very stayed and conservative. However, Spire are taking a different view on things and, much like the structured deals available when you purchase a vehicle, we are striving to do things differently to suite the customer so that we can maximize occupancy within our buildings and engender lasting, long-term relationships between tenant and landlord,” concludes Huntingford.