Property and Asset Management

Property & Asset Management – Melbourne CBD

Project Background:

Bayley Stuart was appointed managing agent of a commercial office building incorporating five shops at ground level in a prime retail location within the Melbourne CBD, following landlord dissatisfaction from previous managing agents.

Outcome:

Within 12 months Bayley Stuart tidied up outstanding issues, built a strong rapport with tenants and re-structured various leases to suit the landlord’s requirements. During negotiations, the building’s largest office tenant advised that they had expanded significantly and would need to vacate. Rather than relocate, Bayley Stuart focused on retaining the tenant, working to provide a beneficial solution to both parties. This resulted in the construction of an additional level on the existing building to accommodate the tenant’s expansion requirements, in exchange for a 10 year lease over their entire premises.

This process resulted in an extension of the weighted average lease term from approximately 12 months to 6 years and provided a circa 20% increase in net income.