Ray White Commercial Bayside was appointed to lease 270m²* of premium office space on the ground floor of a prestigious corporate building in Manly. The commercial tenancy featured an open plan work area with several private offices, multiple meeting rooms and an executive boardroom. The property was occupied by a construction firm looking to break-lease, with 2 years remaining on their agreement.
The landlord also owned another local property, with a government-funded allied health provider renting 160m²* of space. Due to continued growth, this tenant was looking to vacate the premises when their lease expired, and relocate to a higher quality commercial property that could cater to their rapid expansion, and with enough space to support an amalgamation with their sister company.
The allied health tenant was invited to inspect the premises the construction company wanted to leave, and while they could see great potential in the space, it was clear that the significant works that would be required to meet their operational needs would be beyond their fixed fitout budget.
The team at Ray White Commercial Bayside saw this challenge as an opportunity to undertake strategic negotiations with a view to reaching a positive outcome for all involved.
Terms were negotiated with the outgoing construction company tenant who agreed to contribute base fitout costs needed to create an ideal operating environment for the incoming allied health tenant.
This significantly reduced the incoming tenant’s fitout investment, and provided the opportunity for them to unite with their sister company under one roof.
In turn, the deal reduced the outgoing construction company tenant’s 2 year lease liability, resulting in a nett saving for them of 18 months rent after fitout contribution.
From the owner’s perspective, the potential loss of two tenants was turned into a gain with appreciable capital improvements made to their building, and the re-securing of a long-term tenant from secondary to primary accommodations.
Ultimately, Ray White Commercial Bayside were able to facilitate advantageous solutions for all parties.
If you need help or expert advice with buying, selling or leasing commercial property in Brisbane’s Bayside suburbs, contact the award-winning team at Ray White Commercial Bayside today.