Rent Alternatives in Commercial Real Estate Today

The rents in commercial property in Newcastle are varied and made up of different components.  The investor in commercial real estate should be completely aware of the differences between net and gross rentals given the property location and type of property in which they are interested or perhaps own.  Local market knowledge will always help with property decisions and marketing alternatives today.

Local market trends will also impact on the types of leases and incentives that are generated in the local lease transactions.  This says that the gathering of market intelligence is a wise process for Property Investors when they know the type of property they are looking for. Subscribing to Raine & Horne Commercials Magazine will help this process.

Property enquiry today will vary from location to location, however good commercial, industrial, or retail property in Newcastle is always in demand.  Every investment property can usually be improved through good tenant selection and sound lease negotiation, and incorporating terms into the lease which assist in maintaining the property.

At different times in the economic cycle the levels of rent and the types of rent used in Newcastle investment property will change, as will the levels of incentive that could be available to any new tenant if they want to lease a property.  That being said, any lease incentive is not really ‘free’ and should be costed back into the lease rental recovery over the lease term.  Good commercial property agents know how to do that.

There is a trend today with commercial property leasing to move towards gross rentals. Tenants are influencing the trend given that the property market is not biased towards either landlords or tenants at the moment. This needs to be avoided if possible.

The key to a good property lease is a sound negotiation handled by experienced agents that know the local area. The selection of rental type in the lease negotiation should be made with due regard to the property occupancy costs, the lease term, and the tenants stability.

The commercial property leasing process in Newcastle is totally strategic taking into account investment plans of the landlord and the way the tenant can support that in the prevailing market conditions.

Check out our website for more information on recent property listings or trends in the greater Newcastle Region.

Steven Dick
Director Raine & Horne Commercial

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