Originally posted by Hec
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However I am sure the same principles that apply in Nelson apply over there.
Firstly as property managers here I am always careful to not create a trend bigger than is already there. (I hope you can get the meaning of that vague statement).
Secondly if you put the wrong mix of tenants into any sort of close living / operating be it residential or commercial you will well and truely stuff up things for years.
By that I mean do not put a brothel in with lawyers and insurance agents. Or food in with ...
Thirdly I have found generally in residential it is possible to drop the rent by a small margin and you will always attract a tenant.
The same principle does not apply in commercial. Having said that when the market gets like it is today the rule is rules do not work.
Residential is so much bigger with that great big grey mass. Every tenant needs pretty much the same thing like kitchen, bathroom, bedroom. However the commercial is way wider. Of course a 14 story monster is looking for a small slice of a wide commercial sector need. Retail on the ground and office (almost) only above.
I have found in Nelson whilst looking for a fringe CBD light retail / warehousing tenant that even when I advertised 6 months free there were no serious takers.
I have been told that the market is now looking for fit outs, rent free holidays, and earth quake ratings.
So if you get the drift of what I am saying. It is always imperative to look after the interests of the existing tenants. Fail to do that you will loose them and even if you have a good building around the corner you might not be able to attract them or their friends because you the property manager or big time landlord get a bad name.
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