But we’re open for business, and we’re here to help!

With the sudden amount of business closures and surrendering of commercial leases, there are many things Landlords need to address and co-ordinate to manage costs, risks, and maximise return.

For example:-

Independent Make Good Assessments

‘Make Good’ obligations are unlikely to be met by Lessees where leases are surrendered or determined due to financial distress, however engagement of independent assessments by Landlords are recommended to provide a basis for Landlord insurance claims and / or claims against receivers and managers of a distressed Tenant.

Maintenance of Systems required in Fire and Emergency

Maintenance of fire safety systems is required to be carried out regardless of whether property is occupied or vacant.  While the Tenant may have been managing these services during occupation, where assets have been abandoned and / or surrendered, Landlords need to ensure maintenance continues in accordance with regulatory requirements which vary by State.  Failure to meet these obligations could result in a disaster and significant loss. It may also impact on a Landlord’s ability to claim against their insurance policies.

Routine Maintenance and Energy

It may seem logical to shut down base building plant during unoccupied periods, however in certain circumstances, continued operation and routine maintenance of non-essential base building plant can be a less costly option.  Independent cost-benefit assessments are recommended to help identify potential cost savings through risk prevention in these circumstances.  If your building is partially occupied there are ways to minimise your central plant energy consumption servicing unoccupied areas.

Issues surrounding maintenance of structures and fabric during vacant periods is equally important as maintaining building plant.

Ongoing inspections and early attendance to defects associated with structures and fabric is paramount, particularly in the wetter months where water and wind related damage can be prevalent.  If left unattended initial minor issues can result in serious and costly damage not only to the building structure and fabric, but also indoor air quality, making the asset unfit for occupation.

To manage risk and reduce costs associated with unattended damage, monthly inspections of vacant areas is recommended.

Independent Condition Assessments

In preparation of lease renewal, Independent Condition Assessments are essential to provide the basis for condition to mitigate future disputes regarding make good obligations.  The independent document can be signed by both parties and attached to the Lease.

Refurbishment Opportunities

Unplanned vacancies provide the opportunity to carry out base building upgrade works that are typically disruptive and / or impossible during occupation.  These works include, for example, removal of hazardous materials, lobby and amenity upgrades, HVAC and lift upgrades, common area painting, etc.

Base building upgrades during vacant periods provides many cost benefits through improved accessibility, and of course the risk of rent abatement and health and safety claims by tenants is removed.

Tax Write Offs

Where tenant fitout has been abandoned, and of no value to the Landlord, assessments to enable disposal / write off of the assets may apply.

Biocleaning

Where positive cases of COVID-19 have been reported by Occupants of commercial tenancies, biocleaning may be required.  Given the rapid changes in the strategies and management of the virus, it is important that Landlords ensure that their cleaning strategies are in line with current guidelines.

If you would like further advice on any of the above, please contact:

Coco Williams o.  03 9915 6361 m. 0418 348 712 e.  cwilliams@napierblakeley.com

Or any of the following:

MELBOURNE Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com
.
SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552 e.  scooke@napierblakeley.com	PERTH Graham Rigby Associate Director o.  03 9915 6300 m. 0419 847 998 e.  grigby@napierblakeley.com

We have worked in WA throughout our 30 year history without a formal office and during that time have serviced many WA clients working on billions of dollars of their WA projects.

In 1985 N&B introduced property depreciation deductions to many Perth based property investors and since then we have worked on a substantial database of Perth and WA properties, providing a variety of services including:

• Asset acquisition & disposal due diligence
• Property depreciation allowances
• Capital expenditure planning & management
• Fire insurance reinstatement costs
• Project and development monitoring
• Asset efficiency modelling & management
• Construction cost planning & management
• Retrofitting planning & management
• End of lease condition and make good assessments

Graham Rigby started our Perth office last year and he has worked in the property and development industries for nearly 30 years in the UK and in Western Australia with Pindan and KPMG.

Graham has a vast working knowledge of our industry having worked  for a Government organisation, client side with a major developer and as a consultant as a Chartered Building Surveyor and
loss adjusters gaining experience in a wide range of disciplines.

His specialities are in building pathology, building consulting, project management and project and development monitoring.  Graham is supported by the substantial N&B national team of trusted advisors.

He is a Chartered Surveyor and is actively involved with professional development and a committee member of the WA branch of the the Royal Institution of Chartered Surveyors (RICS).

Graham has provided Technical Due Diligence and Development advice on hundreds of significant property transactions and development projects, as well as successfully assessing, costing and negotiating hundreds of Lease End Make Good claims.

Graham can be contacted directly on :

o.  08 9489 4895
m. 0419 847 998
e.  grigby@napierblakeley.com

Some current and recent projects in Western Australia include:

The answer was more than 60,000 !

So if you are going to buy, sell, hold or refurbish a property asset, then the chances are we will have information on it.

If you require any of the following or any of our consultancy services please feel free to call one of your local contacts. 

• Technical Due Diligence Reports
• Make Good Assessments
• Capital Allowances Report
• Insurance Replacement Reports 
• Refurbishment Costs

Contacts

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com
Adam Greene – 07 3221 8255 – agreene@napierblakeley.com

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com