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Divorce or Make Good
September 11, 2024

Make Good starts with getting the original lease drafting right and so long as both parties are reasonable at the end of the lease, then the Tenant’s departure can be amicable. This article provides some guidance to deliver better outcomes. The industry needs a more mature approach to make goods and potentially an industry guide as to what is reasonable.

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Commercial leases - Can we do better Part 2
August 27, 2024

The property and legal industries often make heavy work of agreeing on lease documentation and it does feel like we reinvent the wheel with every new lease. This is the second of two articles that look at several key lease components which we can improve upon without removing rights and obligations of either party. 1. Options to Renew, 2. Environmental obligations, 3. Bank Guarantees, 4. Redecoration clauses, and 5. Agreement for Lease

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Commercial leases - Can we do better Part 1
July 24, 2024

The property and legal industry often make heavy work of agreeing lease documentation and it does feel like we reinvent the wheel with every new lease. This is the first of two articles that looks at several key lease components which we can improve upon without removing rights and obligations of either party. 1. Heads of Terms, 2. Ambiguous lease drafting, 3. Outgoings, 4. Gross Rent or Net Rent, and 5. Alienation.

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Hints, Tips and Opinion

Many corporates are finding economic conditions weaker in 2024 compared with 2023 with many seeking to cut costs in support of maintaining profits. However, be careful where you cut as not all expenditure is bad. Some expenditure is investment in systems and resources that delivers efficiency and savings.  Without that investment the efficiencies and savings are lost. During tough market conditions the companies that focus on cost and not on value will emerge weaker from a slowdown and lag behind its competitors or may not even survive a slowdown. Those that are progressive and do not cut where value is being delivered or invest where there are real financial benefits will come out stronger.

During weak economic conditions corporates take fewer risks and some retreat to the safety of procrastination. As a result, they are not making the decisions that are going to drive growth when market conditions improve. Weak economic climate leads to an increase in the unemployment rate. Employees are fearful of making the wrong decision or making an investment decision when headcount numbers are at risk.
In the Occupier Services sector there is an all too often focus on property transaction rather than business strategies that drive these needs. The sector is too fixated on deal creation rather than enabling business success for clients. Securing a deal with attractive incentives might seem impressive, but if the property is the wrong size or in the wrong location then it is a bad deal?  
We prefer to partner with our clients to really understand their operational and financial needs and objectives to make sure the right decisions are made around a transaction.   
As a society we read less and communication is increasingly via short abbreviated messages via Email, Messenger, WhatsApp or Snapchat. Has this resulted in a reduced skill to write letters, reports and drafting documents?  Has this resulted in a decline in the quality of written work, causing poorly drafted lease documents, and in turn an increase in disputes due to ambiguities and confusion in documentation? Food for thought.
Look beyond.
The need for property in every business is different.  We provide honest and impartial advice that anticipates potential opportunities and challenges so that property use is optimised.

We lead with understanding the business and the operational and financial needs of a client so a real estate solution can be better planned.

Our approach is a little unique as we use our business experience to focus on delivering the whole of business need and not just negotiating lease terms.
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