Service:

Management and Leasing

Introduction:

Effective Property Solutions (EPS) was appointed to manage a mixed-use commercial centre in Canning Vale, Western Australia. The centre, comprising 7,100 sqm of NLA across three separate buildings and housing 29 tenants, faced several challenges upon EPS assuming management. 

Problem:

The centre was dealing with several critical issues that were impacting its profitability:

  • Undermarket Leases: Several tenants were paying rents well below market rates, limiting the revenue potential.
  • Vacancies: Four key vacancies created revenue gaps and detracted from the centre’s appeal.

Solution:

EPS implemented a proactive property management and strategic leasing strategy to address these issues. The focus aimed at maximising occupancy and rental income for the client: 

  • Immediately upon taking over management, EPS initiated negotiations to bring existing leases up to current market rates through renewals and variations.
  • The large vacant shop space was divided into two smaller tenancies to increase leasing flexibility, and the use of another vacancy was changed to accommodate a new restaurant tenant, enhancing the tenant mix. The latter decision not only filled the vacancy quickly but enhanced the centre’s overall attractiveness. 
  • Leveraging their local market expertise, EPS launched targeted marketing campaigns to attract suitable tenants for the vacancies. This included outreach to potential tenants in complementary industries and sectors.
  • Strong relationships were built with existing tenants, addressing concerns and securing favourable lease terms.

Outcome:

Within six months, EPS’s strategic initiatives resulted in:

  • 100% occupancy: Through effective negotiations, strategic leasing strategy and proactive marketing efforts, all vacant spaces were successfully leased.
  • Revenue increase: Lease negotiations and filling vacancies at market rates significantly increased the centre’s net rental income. 
  • Enhanced asset value: The centre’s long-term value was improved, with a diversified tenant mix and full occupancy contributing positively to its marketability and appeal.

Conclusion:

This case study exemplifies EPS’s commitment to effective leasing strategies and proactive property management. Through strategic initiatives, EPS transformed the commercial centre into a fully occupied, high-performing asset, delivering increased rental income and a more valuable investment property for the client. Learn more about Effective Property Solutions commercial property management services.