The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
RetailPartner ContentWed 07 Jul 21

Realtime Data Brings Competitive Edge for Landlords

4f240630-b748-49bf-ae80-5d20bfdbe318

After a widespread national lockdown in early 2020, Covid-19 has had a varied and fragmented impact on Australia’s commercial property market, with restriction levels varying dramatically between states.

Throughout such a volatile time, innovation and adaptation have emerged as key pillars of success for businesses within these commercial property sectors, according to Re-Leased, a cloud-based property management software solution for commercial, industrial, office, retail and mixed assets.

With the external environment shifting daily, landlords who had the upper hand were those armed with real-time data that gave them a clear picture of the market.

While the commercial real estate sector has traditionally been slow in the uptake of real-time data to guide their business decision-making, property professionals are beginning to realise that this information is a powerful tool to gain a competitive advantage.

During the past few years, the changing needs of tenants have been prominently exposed in the office sector.

A growing number of office workers no longer wish to work in an office full-time, which has increased the demand for flexible workspaces, shorter lease terms and tech-enabled fit-outs.

This trend was accelerated dramatically during 2020, as businesses were forced to set up the infrastructure that allowed their employees to work efficiently from their homes.

As tenant’s found it more difficult to access their premises, rent-collection rates fell across Australia and rent-relief subsidies increased as landlords tried to keep them on board.

More established commercial landlords will have the right amenities and assets in place to offer flexible lease terms to larger companies, which will see them grow in popularity, says Re-Leased.

While rent collection is just now returning to pre-Covid-19 levels, a longer-term trend that we are likely to observe is the demand for shorter lease terms.

Tenants are taking with them the lessons from 2020, pursuing greater flexibility and protection for their business.

Securing long-term leases of 10-plus years has traditionally been a key indicator of success for property professionals across Australia. However, these investors will now have to reconsider how they evaluate the performance of their property portfolios and pivot their product offerings.

Co-working spaces are a great example of how demand for shorter lease terms is changing the market for office landlords.

Initially, this business model was hit hard, as tenants took advantage of their short leases and dropped their flexible workspaces as soon as Covid-19 hit.

However, it is this same model that is best set up to offer businesses more flexible leases in the future and meet this growing demand.

More established commercial landlords will have the right amenities and assets in place to offer flexible lease terms to larger companies, which will see them grow in popularity.

An industry that has performed consistently well during Covid-19 has been Australia’s growing industrial sector. Industrial property is currently undergoing a phase of unprecedented expansion and digital transformation, driven by the rise of e-commerce.

This growth was accelerated by online shopping demand throughout 2020, as shoppers were restricted from attending brick-and-mortar retail stores.

As industrial assets become increasingly high-tech and integrate artificial intelligence to optimise manufacturing capability, these opportunities will only expand further.

In 2021 and beyond, industrial assets are likely to rise in value and attract investment from landlords looking to diversify their portfolio.

This means that harnessing real-time data has never been so important for industrial property landlords, to keep up with this rapidly transforming landscape.

It is clear that as Australia rebounds from the events of 2020, the commercial property professionals who will prosper in our new normal will be those who are flexible and agile in their approach, and those who choose to arm themselves with the data-driven tools necessary to make informed and strategic decisions.


The Urban Developer is proud to partner with Re-Leased to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.

RetailOfficeInfrastructureIndustrialAustraliaTechnologyTrend
AUTHOR
Partner Content
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/realtime-data-brings-competitive-edge-re-leased