Category: Commercial Real Estate For Lease (page 1 of 2)

Paul Scarfone – Top Commercial Leasing Agent WA Finalist

The Annual REA Excellence Awards (AREAs) have recently announced the state finalists for the 2021 edition of the Awards. Off the back of a very successful year of outstanding achievements, we would like to congratulate our very own Paul Scarfone, who has been nominated for the title of Top Commercial Leasing Agent WA.

This award recognises the best commercial leasing agents in each state by comparing REA data on campaign results throughout 2021. The announcement comes off the back of Paul’s big win at the REIWA Awards Ball in August last year. He was awarded Top Salesperson by Commercial Listings Sold for the 2021-21 financial year, in what was the events first ever inclusion of the Commercial Sales Awards.

Western Australia had a strong year in the property market as demand and prices grew following the downturn in 2020. Both local and interstate buyers have been in the market for prime commercial property across Perth and beyond, which has allowed Paul and the other agents at Ross Scarfone Real Estate to provide specialist insight and opportunities to buyers and sellers alike.

The skills and experience of the team in the commercial real estate sector provide a wealth of knowledge to the many current and existing clients of the company. The awards received, and the recent nomination are a testament to the hard-work and expertise of everyone involved at Ross Scarfone.

From everyone at Ross Scarfone Real Estate, we congratulate Paul and wish him the best of luck with receiving the award.

Commercial & Industrial Real Estate Experts

At Ross Scarfone Real Estate, we provide excellent service to our clients in a professional and ethical way. If you’re looking to buy, sell or lease a commercial or industrial property, get in touch with the team today with this Contact Form.

Welshpool Commercial Real Estate: Lease Guide

As one of Perth’s premier industrial areas, you’ll find Welshpool commercial property located within the City of Canning, in the inner south-east of Perth. It boasts straightforward access to main highways, with close proximity to Perth Airport and only a short distance from Perth CBD.

Welshpool is a popular location for commercial real estate because, compared to Perth’s other main industrial areas, accessibility and distribution times are quick and direct. The main highways surrounding Welshpool will quickly have your light and heavy vehicles quickly heading in any direction in WA. The Roe Highway runs to the Great Eastern Highway as well as to the South West, whereas the Leach Hwy connects Perth Airport through to the Fremantle Port.

Welshpool commercial property

Welshpool’s commercial property typically consists of warehouses, office warehouses, and offices with storage, catering to a range of commercial and industrial businesses. As one of Perth’s main industrial areas, Welshpool infrastructure accommodates heavy machinery and trucks, and is supported by growing surrounding suburbs which fuel employment for the area’s industry sectors.

Those main sectors in order of prominence include:

  • Manufacturing
  • Wholesale Trade
  • Construction
  • Transport, Postal & Warehousing

Here are the commercial property types available in Welshpool and why you should consider Welshpool for your next commercial lease.

Office Warehouses for Rent in Welshpool

Given the convenient access to arterial roads and logistical hubs, many of the existing commercial property structures available in Welshpool are office warehouses.

The high volume of commercial property in Welshpool means there is consistent availability of commercial properties for lease and sale. Office warehouses in Welshpool vary in size, from relatively small 350 sqm to huge 4600 sqm of floor and land space, allowing you the ability to choose a commercial property size that suits your business operations. A wide variation on property configuration is also evident, making finding the right office to warehouse configuration a less complicated task.

Welshpool office warehouse for rent

Why lease an office warehouse in Welshpool?

An office warehouse leased in Welshpool, will position your business in an easily accessible location for staff and customers, and enable your business to efficiently provide goods and services throughout Perth and WA.

The surrounding highways are built for volume and heavy freight transport and access. An office warehouse in Welshpool will have access to these whilst also providing your business with a manufacturing, distribution or warehousing hub for your company, and one that is positioned to reduce transport costs both in and out of the business.

Warehouses for Rent in Welshpool

Welshpool offers a wide range of warehouse sizes and configurations, with singular or multiple access ways, and with low or high exposure to passing traffic, neither of which being far from the main highways.

Welshpool has been an industrial area for decades, meaning you’ll be able to find older properties in varying condition, up to very presentable modern warehouses for rent or purchase. This variation means that Welshpool has a wide selection of commercial properties for lease, no matter what your available budget or requirements are.

Warehouse for rent in Welshpool

Why lease an warehouse in Welshpool?

Welshpool is one of the main industrial areas of Perth owed partly to the fact of its proximity to Perth Airport and short distance to the Perth CBD. Finding a cost-effective warehousing solution is half the battle and is improved with efficient transport and distribution costs.

As a warehousing location, Welshpool will allow transport simple access to your goods, through unrivaled access to key road infrastructure and transport networks, with the Kewdale Freight Terminal in the neighbouring suburb.

Offices for Lease in Welshpool

Existing offices in Welshpool are in short supply unless looking for office warehouses, with the warehouse component being predominantly used as storage. The other form of property available in Welshpool are secured yards or hardstands, in some cases with relatively high exposure to passing traffic. This property type presents lower overheads provided the layout meets your commercial requirements.

Strategically located close to the Perth CBD, Kewdale freight terminal and major transport routes, Welshpool provides an excellent location for industry to do business.

Office for lease in Welshpool

Why lease an office in Welshpool?

For those offices located in Welshpool, they are well placed to offer services to the south eastern corridor industrial areas, Perth CBD, Victoria Park and Perth’s south-east. For some context, there are over 800 businesses in Welshpool and over 8000 in the wider City of Canning, making it one of Perth’s busiest commercial areas.

Commuting to residential or commercial clients will be made easy through the straightforward access to main arterial roads including Orrong Rd, Welshpool Rd, Leach Hwy & Roe Hwy – the main highways providing access to all of Perth.

Major shopping centres are scattered across the City of Canning, which is in fact home to Westfield Carousel, WA’s largest shopping mall. Small businesses, home businesses, and cottage industries are dotted throughout the suburbs, providing a wide range of services to residents.

Welshpool is seen as a premium industrial location with office warehouses offering you a range of size and configuration options to suit your property requirements. If you are looking to lease in Welshpool or put your commercial property on the market, be it office warehouse or hardstand for lease, contact us today.

Contact us about commercial real estate in Welshpool today

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Find Your Perfect Commercial Real Estate Agent

When it comes to choosing a commercial real estate agent, it’s important to find one who will be able to help you reach your goals, whether that includes selling, leasing, buying, investing, or developing.

Navigating these complexities can be overwhelming. Although, it doesn’t have to be if you find the right agent to support you. The right agent should understand your business needs, their local area, and be highly experienced and well-connected. They should have an exceptional portfolio of clients and properties.

Your agent should also ensure they develop a positive relationship with you, as you should have a good customer experience throughout your property journey.

They Should Know Their Local Area

When choosing a commercial real estate agent in Perth, it’s important to find an expert in your location of interest.

In terms of industrial real estate, there are four main quadrants within Perth:

  • South East Perth – includes Belmont, Canning Vale, Forrestdale, Kewdale, Maddington & Welshpool.
  • North West Perth – includes Balcatta, Joondalup, Landsdale, Wangara & Yanchep.
  • North East Perth – includes Bassendean, Bayswater, Bellevue, Malaga, Midvale, Morley & Osborne Park.
  • South West Perth – includes Bibra Lake, Cockburn Central, Jandakot, Naval Base, O’Connor, Port Kennedy & Rockingham.

If you want to rent or purchase a commercial property, it’s important to choose an area that has the infrastructure, arterial roads, and zoning that best suits your business’ needs. From there, you should find a real estate agent who is an expert in your desired location.

Within the South East Perth quadrant, Ross Scarfone Real Estate are experts in the commercial and industrial real estate sector. They have over 30 years of proven experience.

Find an Agent Who Understands Your Business

A good commercial real estate agent should have a niche that they really understand. When you are meeting with a potential agent, you need to find out whether they are a good fit to work with your business. You need to know that they really understand your requirements.

This means that if you are looking to rent, the commercial leasing agent should recognise your customer profile, and understand your day-to-day operations, turnover estimates, and the equipment and human resources that your business requires. They should also try to gain insight into what your future business plans are, so they are aware of how they might affect your requirements in terms of space, facilities, or the length and terms of the contract.

Your commercial real estate agent should be able to guide you to consider all necessary details about a new office, storage or warehouse space before you even really start looking, let alone commit.

In understanding your business, they should be able to scout for suitable properties within a specific location and present them to you, reducing your stress and giving you more time to focus on your business.

If you are looking to buy, sell or to lease your property, the real estate agent should also understand your business and financial needs.

Choose an Experienced Commercial Real Estate Agent

An experienced commercial real estate agent is essential when it comes to finding the perfect property with the right contract in place.

They should have a transparent portfolio of properties and clients that align with your business requirements. You need to ensure they have successfully looked after similar clients in the past, that have been of a similar size, complexity, and type to yours. While you are researching this, ensure they have a good reputation and that their previous clients would recommend them.

Your agent should also have an in-depth understanding of selling, renting, leasing, or buying a property from start to finish, so they can advise you on that process. This means they will be able to walk you through the documents and other information you will need to have.

A Well-Connected Real Estate Agent Is the Key to Your Success

Your commercial real estate agent should not only understand your business, have proven experience, and be an expert in property in your local area — they should also be well-connected.

This means they should have both local market awareness, and the ability to assist you if you need to relocate or expand in a different area. For example, if you are looking to do business interstate or overseas, they should be able to utilise their connections to ensure you have a smooth transition.

They should also have contacts to key personnel across the property sector, including financial institutions, solicitors, and surveyors. By utilising these connections, they should be able to guide you through every step of the leasing process by referring you on as necessary.

Ensure Your Commercial Real Estate Agent Communicates Well

Your commercial real estate agent should be available to you via phone, mobile and email, both inside and outside office hours (within reason). They should be able to communicate openly and honestly about all matters regarding your business premises and get all key information across to you succinctly.

It’s important you are able to understand what the agent is trying to communicate, so misunderstandings don’t arise —you need to know exactly what is in the contract and what you are getting as part of the deal.

If you need a commercial and industrial real estate agent or property manager in Perth, Ross Scarfone Real Estate has extensive experience and knowledge of the property market in the South East Perth region. They have been helping businesses thrive for over 30 years by leasing commercial real estate, including small offices, storage yards, and industrial warehouses, in an ethical and professional manner.

Ross Scarfone Real Estate - Commercial Property Agent Perth

Contact us for your commercial real estate needs

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The Truth About Rent Reviews, Increases, and Commercial Leases

Whether you’re a tenant or a property owner, your commercial lease agreement will contain a process for changing the rent, usually every year. 

Commercial leases are technical documents that can be quite difficult for a layperson to understand. So, to help you make an informed decision about your rent review, we’ve broken down the process and how it could impact you.

What is a commercial lease rent review?

The rent review of a commercial lease is the process of assessing if the current rent is in line with the market trends. 

Rent reviews are standard practice for commercial leases and you should anticipate the rent to change throughout the term of the lease.

If you’re a landlord, reviewing the rent every year can lead to an increase in income and ensures you’re keeping pace with the market. 

For a tenant, a rent review can lead to a change in rent, either up or down, depending on how the commercial lease is written.

Rent reviews must be written in the commercial lease agreement

In the commercial lease, it will be set when and how the rent will change. In most cases, the rent will change each year, but there can be variations. 

If you’re going to negotiate when and how the rent is reviewed, it must be before the commercial lease is signed. 

In the commercial lease agreement, it will stipulate:

  • the method of the review – how the new rent is determined, and,
  • the regularity of the review – when the rent amount will change

There are 3 types of commercial rent reviews

  1. CPI increase
  2. Fixed increase 
  3. Market reviews

CPI increase

CPI (Consumer Price Index) increases are done every year and depend on the rate of inflation at the time or the 12-month CPI adjustment.

The CPI is determined by the government and is published by the Australia Bureau of Statistics (ABS) each year. 

For Landlords

In most cases, landlords would be reluctant to rely on just on CPI increases as it disadvantages them financially. A CPI increase is usually lower than the other review methods as it doesn’t consider market demand or value of the property. 

To address this, landlords will pair CPI increases with a fixed increase, or stipulate that the CPI increase must be higher than a pre-determined fixed increase.

For Tenants

As CPI increases have been small in recent years, CPI rent increases can be beneficial to tenants. There is, however, a level of unpredictability and some tenants may prefer to know what to expect. 

Fixed increase

A fixed rent review is a set rent increase percentage, usually annually on the anniversary of the lease start date. 

The rent increase percentage is usually between 2%-5%, so every year tenants can expect the rent to increase by this amount. 

For Landlords

While fixed rent increase provides predictability and stability, there is the potential to miss out on larger increases from market reviews. If the market is hot, the fixed percentage amount set at the start of the lease might be less than what the market is willing to pay. 

However, if the market is dropping, you may end up receiving a higher rental income than your neighbour. 

For Tenants

For tenants, fixed rental increases have the opposite benefits. If the market is low and you’re able to negotiate a fixed rental review, you could maintain lower rent for years. 

But if the market if climbing, your commercial lease agreement might set a higher percentage increase to match the market at the time. If the market or economy doesn’t meet expectations, you could be locked into above-average rental prices that are out of proportion to your business income.

Market rent reviews

A market rent review will change the rental amount to be inline with the property market and similar commercial properties. 

To determine the market value, an independent valuation will be conducted to avoid disputes. 

Compared to a fixed increase, a market review will allow the rent to be reset and remain consistent with the economy. 

Usually, market reviews are reserved for the end of a commercial lease, if both parties wish to renew the lease. 

For Landlords

For commercial properties, a market rent review completely depends on the state of the property market and economy at the end of the lease. But such is the nature of commercial property investment. 

Ideally, if the market is increasing, regular market rent reviews will allow you to keep pace and continue increasing the rent at higher rates than a fixed review. 

On the flip side, if the market is decreasing, a market review could see your rental income decrease. 

For Tenants

While a market rent review for tenants can be an opportunity to reset the rent to align with your business’s income, it could also result in a rent increase that will be maintained for the term of the lease. 

Alternative commercial rent reviews

Some commercial lease agreements may vary the method of rent increase year to year. For example, instead of a fixed increase every year, the lease could include a market rental review every two years. 

By not having one type of commercial rent review through the entire lease, landlords and tenants benefit from low-risk terms. 

A tenant will know what the rental increase is every two years and have some predictability and a landlord can capitalise on market increases with the addition of stability of fixed increases if the market doesn’t perform. 

Changing your commercial rent increases  

Unless otherwise agreed, you may be able to negotiate a change in the rental review structure when renewing the commercial lease. 

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How to Negotiate a Commercial Lease

How long will it take to negotiate a commercial lease?

Negotiating a commercial lease can take weeks or months, by anticipating this you can avoid putting yourself under pressure to sign a commercial lease before you’re satisfied with the terms.

Not only could there be several back-and-forths on the terms of the lease and the cost of rent, but properly reviewing the offers and contracts will also be time-consuming.

Then you will need to seek professional financial and legal advice on the terms of the lease. This is something we highly recommend, and we’ll speak about in more detail later, but will also take time as your advisors do their due diligence by examining the commercial lease agreement and explain the business liabilities to you.

What is negotiable in a commercial lease?

Essentially, everything is on the table for discussion when negotiating a commercial lease. Before negotiating consider what you want and what you’re willing to give up to get it.

There may be some terms that aren’t important to you but could be to the other party. Review the list below for some ideas and figure out what you need for each:

  • Rent
  • Length of the lease
  • Options to renew
  • Rent reviews
  • Permitted use
  • Tenancy mix and competition
  • Fixtures and fit-out
  • Operating costs
  • Repairs and maintenance
  • Assignment and sub-leasing
  • Default and breaches
  • Redevelopment and relocation
  • Termination

Get professional commercial lease advice

We can’t stress enough that you should seek professional legal, financial, and business advice before signing a commercial lease.

  1. There may be terms in the lease that you don’t fully understand or comprehend the ramifications of. You mustn’t commit to something you don’t understand.
  2. Signing a commercial lease will directly impact your business. Your outgoing costs will change, as will your liabilities and responsibilities.
  3. You are taking on a financial obligation that could last years. Getting professional financial advice will help you predict if you’re able to meet the commitment.
  4. By signing a commercial lease, you’re entering a legal binding contract. A legal advisor will explain the consequences of breaking the terms of the lease, by either party.
  5. Learn what you’re rights are in case yours or the other party’s situation changes, you’ll know what you’re entitled to.

Get offers in writing

When negotiating a commercial lease, there can be several parties communicating offers and lease terms. This includes the prospective tenants, landlords, and the agents for either. With all the phone calls and conversations that could be happening, there may be a miscommunication that could impact the entire negotiation.

When you receive a verbal offer, ask for an email summarising the terms. This will avoid any last-minute surprises that weren’t mentioned, or if you decide to counteroffer, there will be a record of the exchange.

Understand the market

Spend as much time as possible researching the commercial property market, specifically looking for similar properties to the one you’re negotiating on.

Commercial lease prices are determined by the market and fluctuate year-to-year, even month-to-month. Don’t expect to pay much less than the market average, but you shouldn’t need to pay more unless there are other favourable terms in the lease.

To learn what you should expect to pay, look on commercial real estate websites and commercial agent websites to compare similar properties and calculate the cost per square metre. This will give you a ballpark price and something to negotiate with.

TIP: The longer a property has been on the market, the more likely an owner is to be flexible on commercial lease terms. If a property has been on the market a while, it usually indicates the owner overestimated the market price and could lead to a price reduction.

There’s more to a commercial lease that the rent

Rather than negotiating purely overly the price of rent, understand that there are other factors in a commercial lease that you can bring to the table.

Of course, landlords are looking to receive as much rent as possible but they’re also looking to keep their costs down. Understanding this will allow you to make counteroffers with more variables that can bridge the gap between their price and yours.

  • Shorter settlement periods
  • Rent-free periods
  • Longer lease
  • Lower fit-out costs

Always get something in return

It’s natural in commercial lease negotiations that you will have to concede on some points to bring the deal together. If you do this, try to get something in return for what you’re giving up.

If they’re at their final offer on the price of rent, suggest they pay for other property costs:

  • Repairs and maintenance
  • Fit-out
  • Signage
  • Parking

If you’re looking for commercial property to lease in Perth, take a look at our latest listings or contact us for an obligation-free tour of the properties.

Contact us about your commercial leasing needs

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A Commercial Tenant’s Guide: What Are Outgoings on Commercial Rental Property?

When looking for a commercial property to lease, most people focus on the rental price and can overlook the outgoings. This can be misleading because when you lease a commercial property, as a tenant, you are required to pay both rent and outgoings.

Outgoings include the running costs of owning a commercial property and generally all of these are paid by the tenant.

If you’re about to lease a commercial property, no matter the size, be prepared to pay more than just the rent.

What Are Outgoings on a Commercial Lease?

Outgoings on a commercial lease are the additional costs to rent included in the commercial lease agreement that tenants are required to pay.

Outgoings of a commercial lease can include maintenance costs of the property, council and water rates, strata fees, and insurance.

Here’s a comprehensive list of potential commercial lease outgoings:

  • Council and local government rates
  • Water and sewage rates
  • Strata fees
  • Land tax
  • Insurances
  • Ongoing property services – e.g. pest control, security, and test and tag
  • Property management fees
  • Property condition reports & inspections
  • Maintenance costs – e.g. gardening, cleaning, air-conditioning service, and window washing
  • Rubbish removal and collection

Who Pays the Outgoings on a Commercial Lease?

In a commercial lease, the tenant generally pays all of the outgoings including property management.

The tenant also pays land tax, but on the single ownership basis.

During the lease negotiations for the property, it is critical that all parties discuss the commercial lease outgoings – what the tenant will pay – and include these costs in the disclosure statement.

What Commercial Property Outgoings Must be Paid By the Owner?

While the outgoings for a commercial property lease are paid for by the tenant, retail leases are slightly different whereby there are certain outgoings that the owner is restricted from passing on to the tenant.

These can include costs for the lease or property management fees.

Other outgoings that cannot be included in the lease agreement:

  • Personal costs of the landlord
  • Costs associated with capital improvement of the property

How to Calculate Outgoings of My Commercial Lease?

A commercial lease agreement that requires the tenant to pay outgoings, must include estimates of the future outgoings.

As a tenant, it’s critical to read all of the commercial lease agreement and disclosure statement to understand which outgoings you’ll be liable to pay, what percentage you’ll be paying, and when you’ll be required to make payments.

Looking for commercial real estate to lease? Contact us today

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How to Find A Commercial Property for Rent

If you’re in the market to find a commercial property for rent it can feel overwhelming – especially if you’re not a commercial property expert. By educating yourself before you begin to look for a property, you’ll reduce your vulnerability to misleading sales tactics and undesirable lease agreements, resulting in a better outcome for your business.

Therefore, we’ve put together a foolproof guide with tips and tricks to help you become better informed on finding the best commercial rental in Perth.

Plan Ahead

The less time you allow yourself to research and find a commercial property to rent, the more pressure you’re putting on yourself find the perfect lease. This will decrease your negotiating power and increase the likelihood of a rushed decision.

We recommend planning 6 months in advance and giving yourself plenty of time before you need to sign on the dotted line. The more time you have ahead of the crunch increases your flexibility and puts you in a better negotiating position. You’ll be more aggressive when negotiating lease agreements and may even get a rent reduction.

This planning time will help you be more informed on what spaces are available and how the commercial rentals you’re considering compare to others on the market. You can also speak to your colleagues about what considerations they have for the new space. You may need a bigger office, a larger air conditioning system, or a fixed boardroom or meeting space. Making time for colleague input will ensure team members are also happy with the transition. 

What Can You Afford?

Before you consider looking for a new commercial rental, it’s important to have a sound understanding of what rent you can afford to pay over the course of the lease. It’s smart to set a strict budget, as we often tend to push beyond our limits when we see something we love. Sticking to the budget will ensure you reduce placing yourself in a rocky financial situation by committing to something you can’t afford.

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Commercial property for lease in Welshpool

Review The Property Market

Keeping an eye on the property market will mean you have the opportunity to jump on a fantastic opening if it arises and the market drops. By having this leverage, you could save yourself thousands of dollars in rent.

By keeping an eye on the websites of commercial real estate agents, you will be able to see what properties have been sitting on the market for the longest duration. Giving you the opportunity to negotiate better terms for your lease.

What Do You Need to Consider?

Now you have assessed the commercial rental market, it’s time to consider what you need from your new property.

Here are our top tips on what you should look out for.

What features are essential?

Consider factors including:

  • High ceilings
  • Office space
  • Kitchen
  • Male and female toilets
  • Lunch or break out room
  • Server room
  • Stationery and printer storage
  • Meeting space or boardroom

Finding The Best Deal

The newest commercial rentals will sit at the top of commercial real estate websites, but sometimes agents will pay to move old listings to the top. To ensure you have a solid understanding of which properties have been on the market for the longest time, head to the commercial real estate agents website to find their list of commercial properties and head to the back of the list.

The oldest listings will often provide the most value when it comes to negotiating. If the property hasn’t sold it may be due to a number of reasons, such as price or location. If one of these listings suits your requirements, you may be able to negotiate a better deal.

One of the main criteria commercial real estate is valued on is features. Generally speaking, the more features a property has, the higher the rental price will be. If you have a sound understanding of which commercial property features are and are not valuable to you ahead of negotiating, you may be able to lease the property at a lower rate. If you do not require a property with extended office space for example, you can work with the real estate agent to negotiate down the premium placed on this feature.

Warehouse for lease in Kewdale

Be In The Know

By subscribing to email lists of agents leasing commercial properties in Perth, you will be the first to know when a new listing appears on the market and have the opportunity to be the first to view it. This means you lower the chance of having any competition to lease the property, resulting in better negotiating terms for the lease.

Consult a Commercial Property Expert

If you’re still feeling overwhelmed with the process, speak to the local commercial real estate experts at Ross Scarfone Real Estate. We specialise in commercial and industrial buildings for lease in Perth’s south-east corridor of Belmont, Welshpool, Kewdale and surrounds. You can view our entire list of properties to lease and request a tour of the available commercial rental properties in the area.

Contact us about your commercial real estate needs today

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