Innovative rental deals a new trend in South Africa
The current economic conditions being experienced on a global scale have seen a rise in vacancies for many property owners.
Now, more than ever, it is imperative to attract and retain tenants – particularly in commercial office buildings, which have been hardest hit by increasing vacancies.
Sean Paul, Executive Director of Spire Property Management says that an increasing and welcomed trend in South Africa sees the rise of innovative strategies to attract tenants to buildings.
Structured rental deals – rental free periods and fit-out allowances
Paul goes on to explain that one strategy is that of structured rental deals that are tailor made to suite each tenant – saying that it is important to recognise that different tenants have different cash flow scenarios and to create rental agreements that fit in around these scenarios.
“For example, we are currently offering tenants a rental free period during the course of their lease at one of our managed industrial buildings in Germiston, called Meadowbrook. Tenants are being offered the ability to structure up to eight months rent free during their rental period at Meadowbrook. This may not necessarily be at the start of the lease, but can rather be structured around a time when the tenant knows that their cash flow will be minimal – perhaps over their annual shut down.”
“Property rental deals in South Africa have traditionally been very stayed and conservative. However, in order to maximise occupancy within a building and engender lasting, long-term relationships between tenant and landlord, the time has come to take an alternative view on things and to do things differently to suite each individual customer,” concludes Paul. “The use of such innovative strategies is proven to be effective – as is shown by the Spire managed portfolio which continues to buck the trend with low vacancy rates.”
For more information contact Gregg or Sean at Spire Property Management on (021) 685 4020 or Natasha on (011) 285 6581.