Improving investment returns

Our client built four large warehouses of 1,500m² each in Derrimut. He operated his business from one of the units and sought to lease the other three and hold them as investments. This goal had not gone to plan with vacancy in two warehouses and a month-to-month tenant in the other.

He engaged our services to assist with better presentation of the properties to attract quality tenants, thus setting up his investment holding for the future.

Nichols Crowder took on the lead agency role and appointed a conjunctional agent who was based in the area to manage enquiries and inspections.

Solution

On assessment of the asset, we determined that the current month-to-month tenant could be moved to another warehouse, with them agreeing to take a fixed term lease. This enabled us to free up their current space, with a new tenant agreeing to take that at an increase in rent of 40%.

Furthermore, a government tenant was then sourced and secured for the other unit and we managed this process to ensure all lease documentation was set up and the tenants settled.

Outcome

Within two months of Nichols Crowder being engaged to manage this development, we had 100% occupancy for our client, a better presented asset and a plan to limit any future vacancy.

Nichols Crowder manages commercial and industrial properties all across Melbourne.

Our clients hold diversified property portfolios. Regardless of location we provide comprehensive management and leasing services with one central contact making it easier for our clients, as well as ensuring consistency and quality across portfolios.

The NC Experience

Of the four recently completed warehouses, three were vacant or leased month to month. Our client was keen to keep the properties as investments however the property required some innovative thinking and improvement so that they could reap higher investment returns.