Industrial Focus© Research Hawke’s Bay | October 2020

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading +$0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Turley & Co Industrial Focus© Research | Oct 20

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October 2020 Overview

The prior industrial building boom for Hawke’s Bay peaked in 2016-17 and has considerably tapered since.  Hastings 2018-19 v. 2016-17 is down about 40%.

Hawke’s Bay industrial land supply is considerable at ~187 hectares.  At 2014-19 building rates this represents 187 large sheds or probably at least 30 years supply.  

 

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Retail Focus© Research Hawke’s Bay | October 2020

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading +$0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Turley & Co Retail Focus© Research | Oct 20

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October 2020 Overview 

Since the lockdown, Napier-Hastings shop vacancies have increased by 7 shops – Hastings prime CBD by 3 vacancies and Napier prime CBD by 4. 

Hawke’s Bay primary retail locations combined occupancy is 92% compared to 93% in March, indicating relatively minor deterioration.  In 2015 combined occupancy was 90%.   

Our latest occupancy survey result is considerably better than some commentary suggested might occur.  The next survey at the end of Q1-21 will be interesting as retail property adjustments are still playing out for COVID effects.  The lockdown in many cases was assisted by landlords and Government. 

Refer to the report for more information.  

 

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Join Our Team!

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading +$0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Property Strategy and Valuation Graduate + Summer Internship

Team Turley & Co is seeking a new colleague to join our well-experienced and busy property professionals’ team.  Our increasingly strong workflows create an excellent career opportunity for an in studies or graduate property professional.

Our training programmes deliver excellent personal and career leverage.  Mentoring is by very experienced property practitioners working on a variety of interesting property projects in Hawke’s Bay and NZ-wide for prime clients.  Our team is close-knit and workplace positive – we love property and our profession.

You would be business integrated from day one and widely deployed, garnering more property experience and business operations insights than usual for bigger firms and typical graduate training.

This cross-disciplines opportunity is not commonly offered.  Your land economy consultancy and valuation qualifications opportunity would be: Registered Valuer, Registered Property Consultant, and public land actions LINZ Accredited – leading to superior property career positioning and excellent renumeration.

We propose a paid summer internship and a 2021 permanent graduate position.  The positions would suit a strongly motivated property degree studies person and ideally a 2020-21 property degree graduate.  We will most likely expand our team further in 2021.

If you are already living in NZ and could join us by late 2020 or early 2021, please provide an expression of interest and your resume to pat@turley.co.nz

All communications will be treated as strictly confidential.  We will reply if you meet the property studies and NZ resident prerequisites.

Applications will close on 9 October.

 

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Napier trade retail shopping centre

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading +$0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

 

 

The Crossing website

 

 

“A new shopping centre with up to 16 outlets, including a gym and café, is set to be built in Napier.

The shopping centre on the old Placemakers site near the corner of State Highway 2 and Taradale Rd will be called The Crossing.

The 1.9-hectare site will be comprised of three buildings and have a total of up to 16 units, with the possibility for one café/ bistro and a gym.”

The Crossing aims to be a Hawke’s Bay trade retailers’ hub according to press information.

 

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1H20 | Commercial-Industrial Reports | Issue 31

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading +$0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Turley & Co free access market indicator reports:

 

NEW Economic Indicators collated

Prior indicator reports 

 

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Keirunga Oaks Update + 10 Year Reserve Management Plan

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

 

HDC Reserve Management Plan Update 30 July 20

Hastings District Council on 30 July advised over 200 surveys and feedback received:

 

Scott Design Keirunga Hilltop Pergola Proposal

Jacob and Hana Scott for Scott Design have proposed an architect designed pergola for the Keirunga hilltop:

 

Keirunga Oaks Update 17 July 20 + HDC Reserve Management Plan

Pat Turley in January 2019 initiated a successful Save the Keirunga Oaks campaign that was well-supported by Turley & Co colleagues and core team: David Cranwell, Johno Ormond and Jeff Whittaker – plus many others including 33 financial donors.

Hastings District Council had proposed to fell 40 heritage oaks 80 years old now believed to be ~120 years old.  Council proposed felling 89 trees at Keirunga.  Of 210 submissions, 92.3% (194 people) wanted to maintain a nationally unique oak dominated woodland.

At the conclusion of the 30 May 2019 hearing HDC Councillors, led by Mayor Sandra Hazlehurst unanimously resolved: That Council adopts Option 4 and agrees to commence the formulation of a new community led Tree Management Plan that addresses the outcomes sought from the majority of submitters.

HDC recently activated a Reserve Management Plan consultation process for Keirunga: The online survey and submissions.

The Keirunga Steering Group’s submissions authored by David Cranwell and Johno Ormond for the collective:

If you support the submissions please let HDC know: HDC online portal for Keirunga.  A brief statement confirming you support the Keirunga submissions by David Cranwell and Johno Ormond would be suitable.  Or you could prepare a unique submission.

 

Johno Ormond Steering Group Update | 16 July 2020

Johno and David’s submissions are informed by 14 months of further Keirunga volunteer work and working with HDC people.  Johno Ormond followed Pat Turley as a leader for Keirunga and provided 16 July:

It has been a long but successful year of community group meetings, working with HDC staff, and communicating with HDC Councillors.

The culmination of that year’s work is the collective’s submission 17 July 2020.  If you are interested in the future of Keirunga please read the submission and endorse it, by making a submission to HDC and stating your support.

The submission is the product of ideas and insight of the community “Steering Group” and Council Staff. The community Governance group is open to all members of the public.  We were lucky enough to get experienced experts on board in the fields of arboriculture, horticulture, botany, garden and landscape designers, among others.  The community group was 17 strong, with around 12 active participants.

Huge thought and effort was put into the collective’s RMP submission.  I attended 25+ meetings over 14 months including 1 in the council chambers (with Pat Turley, David Cranwell and Jeff Whittaker, as the 14 months was not without its battles).  Most of the meetings included HDC staff, who had great ideas.  The Steering Group was a huge collegial team, all with lots of input which was negotiated amicably.  Many iterations of reports were developed by me as we tried to clearly express the intent of the collective.

Thank you for your interest in and support for this community asset.  If you can support our submission, you will help us have some influence over the outcomes of the RMP process for Keirunga, which will run from now through to the end of the year.

Johno Ormond – Leader of the Keirunga Steering Group

NZH | HBT | 8 June 20 | No tree chopping, but what should we do with Keirunga Gardens?

 

 

 

Save the Keirunga Oaks Campaign Press 2019

 

 

 

 

 

 

 

 

 

 

 

 

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Architecture Awards – Turley House

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Hawke’s Bay & Gisborne Architecture Awards Winner – 1 July 2020

 

     

The Turleys created the Turley House design brief and worked closely with Napier architect Gavin Cooper developing the plans and design detail.  Turley & Co project-managed tendering and the construction project.  It considerably bolstered our teams’ knowledge of building systems and technologies, the building industry, Council consenting process, the Building Act, the Construction Contracts Act and law.

Congratulations and thank you to Gavin Cooper for working so well with the Turley family to create a NZ Institute of Architects 2020 Hawke’s Bay & Gisborne Architecture Awards Winner.  Gavin is an architect of integrity and he’s great at client interpretation and collaboration.  Congratulations Gavin on your architect peers’ recognition!  The Turleys love the house, thank you.

Hawke’s Bay & Gisborne Architecture Awards 2020 all categories virtual event video 13 mins and press links

Turley & Co was a property strategy and valuation advisor to Hawke’s Bay & Gisborne Architecture Awards commercial architecture category finalist: $20m Hastings Health Centre.  Congratulations to independent chair Peter Ellis, CE Andrew Lesperance and Project Manager Nick Ward.

Hastings Health Centre news post by Turley & Co.

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Architecture Awards – Turley House | NZH | HBT

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Hawke’s Bay & Gisborne Architecture Awards Winner – 1 July 2020

Congratulations and thank you to Gavin Cooper for working so well with the Turley family to create a NZ Institute of Architects 2020 Hawke’s Bay & Gisborne Architecture Awards Winner.  Gavin is an architect of integrity and he’s great at client interpretation and collaboration.  Congratulations Gavin on your architect peers’ recognition!  The Turleys love the house, thank you.

Turley & Co news post and press:

NZH | HBT | 1 July 20 | Hawke’s Bay building projects win big in architecture awards

 

 

Stuff | 1 July 20 | From the tiny to the very large: Best projects in NZIA Gisborne/Hawkes Bay Architecture Awards

 

 

ArchitectureNow | 1 July 20 | Winners revealed: 2020 Gisborne/Hawkes Bay Architecture Awards

 

 

 

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Hawke’s Bay Whakatu Inland Port – TCL Land Acquisition

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Napier Port 12.1 Hectares Inland Port

Congratulations Napier Port acquiring Crown approval in principle for $20m for the development of Napier Port’s inland port at Whakatu.  Napier Port Chief Executive Todd Dawson said: “The Whakatu Inland Port is a vital piece of infrastructure that will provide Napier Port with capacity to meet the regional growth expected within Hawke’s Bay and beyond.”  The Government’s proposed support for the Whakatu Inland Port will bring the development forward by five years.

Turley & Co in 2017 was successful for Napier Port in acquiring a key 8.1 hectares industrial zone land component for the inland port.  Refer below.

Port news release and:

NZH | HBT | 1 July 20 | Hawke’s Bay ‘inland port’ development: 46 jobs created in $20m Whakatu project

 

 

Stuff | 1 July 20 | $20m inland port to bring more jobs to Hawke’s Bay

 

 

Turley & Co Inland Port Industrial Land Acquisition 2017

The Port since 2003 has owned 4.0 ha of Anderson Road industrial land with road frontage and rail sidings’ access that the Port purchased for $870,000 ($21.75/ m2).  Turley & Co was involved.

In 2017 Turley & Co led acquisition of the adjoining 8.1 ha industrial zone land at 16 Groome Place for $3,867,500 ($47.50/ m2), creating a contiguous future inland port block of 12.1 ha – just over 30 acres in old metrics.

Pat Turley assisted the Port’s property strategy and led valuation advisory, due diligence planning and investigations, Council discussions, land development advisory, land purchase strategy, other experts’ services acquisition, and he successfully negotiated the Port’s neighbouring land purchase.  There was no obvious Plan B industrial land option for an inland port with railway access.

Turley & Co supervised and monitored the vendor’s new road development delivery.

The Port’s 2003 and 2017 purchases aggregated land has been zoned for industrial use since 2003.

    

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Hastings Health Centre Architecture Awards Finalist

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Hawke’s Bay & Gisborne Architecture Awards Finalist

Hawke’s Bay & Gisborne Architecture Awards Finalists 02 April 2020

Turley & Co was a property strategy and valuation advisor to Hawke’s Bay & Gisborne Architecture Awards commercial architecture category finalist: $20m Hastings Health Centre.  Congratulations to independent chair Peter Ellis, CE Andrew Lesperance and Project Manager Nick Ward.

The Turley House was the housing category architectural award winner 1 July 2020

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Hastings’ Eastside Eat Street gains $300K funding

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

HDC news post: Hastings’ Eastside Eat Street gains $300K funding

Congratulations HDC on $300k funding from Waka Kotahi New Zealand Transport Agency’s Innovating Streets pilot fund for Hastings’ Eastside Eat Street Stage Two.  Nice work by Rachel Stuart and team, Mayor Sandra Hazlehurst and hats off to Kathryn King.  This is very cool!

HDC has done well to recognise the opportunity and secure the funding.  It’s especially pleasing given current challenges for retail and hospitality everywhere. Hastings’ Eat Street is the result of setting a well-considered strategy and determined effort to see it through.  CBDs and town centres are important social centres, they give communities heart.

Team Turley & Co has been a Hastings’ CBD vibrancy initiatives contributor, and originally the only major LTP submitter of two on the CBD in May 2018.  Our articles include CBDs are Social Centres.

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Private v. Public Road Napier Residential Subdivision

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

This is about a gated residential subdivision with private land ownership of roads and infrastructure v. ungated with publicly accessible streets vested in Napier City.

Turley & Co’s public land practice has managed well over 150 unique road legalisations in the past 22 years for Council clients around NZ.

We are LINZ Accredited since 1998 for road legalisations and regular development land valuers/ advisors.

NZH | HBT | 18 June 20 | Napier’s new gated community? Huge new subdivision hangs in the balance

 

 

 

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Tomoana Hastings $41m Industrial Sale

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5b acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Spectacular Tomoana Hastings industrial sale: $41m yield 6.25% for a multi-title multi-tenancy property investment. For more details including tenancy particulars and WALT contact Turley & Co people.

Team Turley & Co says “the Tomoana sale result is impressive …  It would likely be the largest investment real estate transaction in regional NZ if not the country since the pandemic hit.  Whilst negotiated prior, the deal went ahead and reportedly fully subscribed notwithstanding the current economic shock.

We anticipate strong qualities commercial-industrial investment property will weather the storm well, with value gains for prime property not improbable, given even lower interest rates since the pandemic emerged.  Generally retail property would be an exception for now.  Overall we expect increased differentiation for property qualities and investment attributes.

NZH | HBT | 5 June 20 | Hawke’s Bay’s Tomoana food hub nets $41m in record sale for region

 

 

 

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Turley & Co UK Property Correspondent Update

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

UK Commercial-Industrial Property | 26 May 2020

Our UK commercial-industrial property correspondent’s observations:

  • Commercial agency and lending transactions driven valuation work has fallen off a cliff.  Asset management and lease advisory is inundated collecting rent and/or agreeing lease variations (re-gears).  Residential lettings surprisingly are busier than ever.
  • Expect topflight investment properties to be keenly sought given buyers out there with cash (pension funds, local authorities etc), with a mandate to acquire to generate income.  Interest rates have dropped so prime property yields will squeeze.
  • Investors will compete for the strong covenant tenants who have been relatively unaffected by the pandemic and that can continue to operate and pay rent – investors want these tenants on their books more than ever.  Property essential business asset classes will standout: supermarkets, petrol stations, storage, distribution and logistics warehouses, etc.
  • In the last 12 months a Science Park building was acquired at 5.0% with long lease tenants with R&D funds in reserve £50M plus.  Late 2019 a leisure park property tenanted by national chain cinema and restaurants, transacted at circa 7.5%.  The 2.5% cap rate difference is expected to considerably increase given the pandemic that caused next to no rent income for the leisure park and probably not for 6 months.
  • High street retail could be almost wiped out and some UK investment values could be close to vacant possession values.  Major retail brands with a substantial online presence are more solid.  But for other high street retailers, the pandemic lockdown is the last straw.  Turnover rents are a suggested strategy and potential solution.
  • National restaurant chains have required landlords’ agreement to 50% rent reduction ‘by the end the of week’, threatening otherwise the company could pass over to receivers.
  • People are signalling they want to work from home more often.  Anecdotally, a 700 staff firm survey confirmed 84% want to WFH more frequently once the crisis is over.  This has obvious potential to disrupt the office property market.
  • Office rents will probably not see much growth for the foreseeable future given businesses will potentially reduce footprints and given WFH.  Office users are currently mindful of a full rent burden and underutilised office facilities/ real estate.
  • Many city dwellers will shift their focus to moving into rural areas to get away from the rat race, and to have some space and fresh air (but nearby trainlines/ commuter lines), for a fraction of city housing prices.  One large agency has reported a sudden spike in rural enquiries.

 

Turley & Co UK Property Correspondent | 26 May 2020

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Retail spending delights Hawke’s Bay retailers | NZH | HBT

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Massive bounceback in retail spending … 

“After seven weeks of being closed to the public, Hawke’s Bay retailers say the bounceback in in-store attitudes around the region have been “like Christmas” since the country entered level 2 …”

Turley & Co was a turnover rent leases commentator (NZH Premium subscriber access):

NZH | HBT | 18 May 20 | ‘Like Christmas’: Massive bounceback in retail spending delights Hawke’s Bay retailers

 

 

Hawke’s Bay Today: “Turley & Co property strategist and valuer Pat Turley said in the UK there has been talk recently about retail turnover leases being an answer to a high street’s retail quagmire.

Turley said turnover leases occasionally apply for hospitality tenancies in NZ, for Hawke’s Bay supermarkets and regional trade retail stores.

Rent additional to a base rent is triggered by retail sales over a certain level.

He said there are pros and cons and “if the retail sales performance necessary to trigger additional rent is set too high, landlords would unlikely agree.”

Turley also points out that “a certain rent level is needed to support retail property investment and for town centres to prosper.”

He says the model has potential though as a “shared pain and shared gain retail lease basis in Hawke’s Bay.”

Refer to our related news posts UK Retail Property Catastrophe Spurs Turnover Leases Talk and Turley & Co Retail Focus Report

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UK Retail Property Catastrophe Spurs Turnover Leases Talk

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

Contact Turley & Co for lease strategy and market rent valuation advisory.  A lease may enable tenant and landlord activation of market rent reviews and some leases provide for rent reductions.  Our experience includes over 350 resolved or arbitrated commercial property rent valuations including in 2019, annual rents circa $1m at Hamilton and New Plymouth, and the new $20m Hastings Health Centre development advisor and valuer.  Refer to our related news posts: COVID-19 | Premises No Access in Emergency Rent Relief and Retail Property Focus© Hawke’s Bay | April 2020

 

Turley & Co Turnover Leases View

Turnover leases occasionally apply for hospitality tenancies, for supermarkets and trade retail stores like Mitre 10 in NZ.  Rent additional to a base rent is triggered by retail sales over a certain level.

There are turnover lease pros and cons – for a retail property challenges solution, turnover lease settings would be key.  If the retail sales performance necessary to trigger additional rent was set too high, landlords would unlikely agree.  A certain rent level is needed to support retail property investment and for retail locations to prosper.  Rent level relative to land and building costs is key to retail districts renewal.

The turnover rent tenancy model has potential as a “shared pain and shared gain”, retail leases basis for Hawke’s Bay and elsewhere in NZ.

Turley & Co turnover rent leases press link

 

UK article 7 May on retail turnover leases:

Growing retail crisis reignites debate over turnover leases

By Jessica Newman, Sebastian McCarthy | Thu 7 May 2020

 

“The already tense relationship between retail landlords and tenants deteriorated further when the government temporarily banned landlords from taking legal action against occupiers over attempts to slash rents or take payment holidays.

Landlords slammed the new legislation, which will last until 30 June, claiming that some occupiers would just try to exploit the rules to avoid paying rent.

But retailers say they need such protection if they are to survive, and some are now going further and reigniting the debate over the very nature of the retail lease itself.

“The old leasing model is finished,” Michael Murray, Mike Ashley’s property chief and future son-in-law, told The Sunday Times. “We need to move to a modern one based on turnover, which reflects the decline on the high street.”

So will Covid-19 do what the retail crisis has so far failed to and prompt a fundamental rethink of the retail lease – or will the debate last only as long as the lockdown?

For many retailers, the lockdown has already been the last nail in the coffin. Last week, the Oasis and Warehouse Group confirmed it is to close all its stores and online retailing with the loss of more than 1,800 jobs. The likes of Laura Ashley, Debenhams and Cath Kidston have also fallen into administration and closed swathes of stores as a result of lockdown.

Retailers on shaky ground

Several others appear to be on shaky ground. Mobile phone retailer Carphone Warehouse has shut all its stores and John Lewis (pictured) says it may not reopen all of its stores after the lockdown.

With so many high-street stalwarts fighting for survival, retail expert Richard Hyman thinks the move towards more turnover-based rents will “definitely happen”.

“I don’t think landlords have a lot of choice. Twelve months ago, we’d have said there is a Premier League of landlords, and right at the top you’ve got floor space that will always be in demand. I don’t think any floor space will always be in demand after this crisis.”

“Having turnover-based rents doesn’t mean you have leases with break clauses every week, but that leases are flexible for both parties. The question is, will the bloodbath force people to do things or will people sit down and work out a more positive kind of trading relationship?”

Even if they did plump for the latter approach, many landlords are not convinced it would work.

Turnover-based rents are a noble thing to ask for but difficult to achieve

Martin Roberts, Addington Capital

Martin Roberts, principal and co-founder of Addington Capital, which owns several UK shopping centres including Charter Walk in Burnley and The Harvey Centre in Harlow, says: “It’s a noble thing to ask for but is very difficult to deliver. For example, retailers tend to be reluctant to share sales figures with us, so how would it work?”

Roberts says any change in the leasing model is likely to require a framework agreement between the British Retail Consortium, on behalf of retailers, and the British Property Federation, acting for landlords.

“If you could get buy-in from the top 10 landlords and top 20 tenants, you might have the momentum to get that moving,” he says.

The chief executive of the British Property Federation, Melanie Leech, also has her own concerns. “In many cases lenders, property owners and their tenants are already working together to find solutions, which may include measures such as turnover-based rents,” she says.

“However, this requires a true commitment to partnership and transparency where retailers are open and willing to share their financial data.”

The new stresses being put on the landlord-tenant relationship certainly don’t help. But difficult though a transition to turnover-based rents may be, the terrible impact of Covid-19 could well give retail landlords no choice.”

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50 Public Land Projects for 7 Councils + Crown

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists. 

 

Currently 50 Public Land Projects for 7 Councils and The Crown

Turley & Co currently has over 50 property projects for 7 Council clients located from Hawke’s Bay to New Plymouth – and across the North Island.

Contact us for Council and Crown public land property assistance: land status and history, portfolio and leasing strategies, valuations, acquisitions and disposals, road gazettal legalisations, reserve land revocations and more.

LINZ Accredited for public land statutory actions since 1998 including the Public Works Act 1981.  Turley & Co was appointed this week by a Crown agency to lead and manage with real estate agency employed by us, the sale of 5 Crown land former reserves under LINZ and Land Act 1948 requirements.

Our experience includes 17 years Office of Treaty Settlements landbank sole provider NZ-wide and over 450 acquisitions; Crown land former reserves statutorily compliant disposals Manawatu and monthly road gazettal legalisations.

COVID-19 | Premises No Access in Emergency Rent Relief

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists. 

 

COVID-19 Premises Emergency Rent Relief

Contemporary commercial-industrial leases contain a ‘No Access in Emergency’ clause (27.5 or similar):

If there is an emergency and the Tenant is unable to gain access to the premises … then a fair proportion of the rent and outgoings shall cease to be payable for the period commencing on the date when the Tenant became unable to gain access to the premises to fully conduct the Tenant’s business from the premises until the inability ceases.

A lease may enable tenant and landlord activation of market rent reviews and some leases provide for rent reductions.

Contact us for lease strategy and market rent valuation advisory.

Our experience includes over 350 resolved or arbitrated commercial property rent valuations including in 2019, annual rents circa $1m at Hamilton and New Plymouth, and the new $20m Hastings Health Centre development advisor and valuer.

And refer to news post: Retail Property Focus© Hawke’s Bay | April 2020

Retail Property Focus© Hawke’s Bay | April 2020

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Turley & Co Retail Focus© Report

Download free report:

Radio New Zealand property news audio 22 April

Since our Q3-19 survey 6 months ago, the overall Hawke’s Bay mainstreets’ vibrancy situation is unchanged at 93% occupancy – shop numbers increased by 1 and vacancies were elevated by 2.

Government subsidy and stimulus packages will assist mainstreet retailers to financially pull through the pandemic, and the economic aftermath may not be as bad as feared. In the current age of online shopping, most retailers operate a dual strategy with physical stores combined with online virtual retail. Retailers will be looking to boost their online presence and think outside the box for ways to operate under lockdown rules.

Team Turley & Co is picking that Government money flows combined with retailer and hospitality innovation, and more people shopping local; will help underpin a Hawke’s Bay town centres’ rapid recovery … [refer to PDF report for more]

And news post: COVID-19 | Premises No Access in Emergency Rent Relief

And late 2018: CBDs Are Social Centres | A Hastings’ CBD History | BayBuzz Magazine

RNZ News Commercial + Retail Property

Registered ValuersRegistered Property ConsultantsLINZ Accredited.  Hawke’s Bay-based premium quality valuation and creative property strategy© leading $0.5B acquisitions-disposals NZ-wide since 1998.  Valuation litigation and commercial property specialists.  Development and public land specialists.  Our People.  Property economy analysts and commentators – for Press.

 

Retail + Commercial Property Audio

The following Radio New Zealand news item aired at 6.53 am on 22 April.  It offers retail property insights and commercial property value projections:

RNZ audio 4’ 54” commercial property item starts at 02:16

And refer to our news post: Retail Property Focus© Hawke’s Bay | April 2020