Need an expert commercial property manager? We are commercial & industrial specialists. Learn about our commercial property management services…
We don’t aim to be one of the biggest or top commercial property management companies in NZ, or even just Auckland. Instead, our goal is to be the best.
To paraphrase renowned management guru Jim Collins who says “Good is the enemy of great“, we believe complacency is the enemy of best.
One of the ways we strive to be the best is by maximising the value of the property you entrust us to manage. Whereas ‘robot’ commercial property managers do little more than just collect the rent, we add value. Read on to find out how.
On this page…
- Why use a commercial property management company?
- What we manage
- Who we serve
- What we do
- Commercial property management case studies
- Get in touch
Why use a commercial property management company?
Time: Many of our clients previously managed their properties themselves but have better things to do with their time 🕓
The sub-title of the book The Art Of Delegation says it all: “Maximise Your Time, Leverage Others, and Instantly Increase Profits” 💸
Or the tongue-in-cheek version: Never put of until tomorrow what you can get someone else to do today! ✅
Money: With management fees usually paid by the tenant as part of their outgoings/opex budget, why would you take on all that hassle yourself when we can do it at no cost to you? 🤔
Impartiality: We are completely impartial. We’re not part of a real estate agency or even aligned with one. That means no conflict of interest, no nudging you into things that generate commissions for sales agents, no incentive to churn tenants or encourage you to sell your property.
Just good, honest advice and wise management, always looking at how we can add value to your properties 🦉
Expertise: We are one of the few firms to specialise in managing commercial properties for investors 🏢
Focus: Are there any other specialist industrial property management companies out there? If you own shops, offices or industrial property we welcome your business. Bonus points for industrial property! ❤️🏭
Experience: Each executive on our commercial property management leadership team is also a commercial property investor, so we ‘get it’. We understand commercial property management from an owner’s perspective, and we have learned the most effective ways to add value. (See case studies below for examples.)
We currently manage anything from large multi-million dollar commercial property portfolios right through to single units.
Provincia Property Management Ltd should be at the top of your list of commercial property management companies to consider.
Free Review: Do you own commercial property in Auckland or Hamilton? If you’d like us to review the lease and advise on whether the tenant’s obligations cover our commercial property management fees, and where we think we can add value, we are happy to offer a free lease review as a complimentary service. Get in touch to book an appointment now.
Get in touch to book a FREE lease review now…
What we manage
Industrial property management
From large distribution centres and factories to small industrial units – and everything in between.
Office property management
Office buildings and office space in CBD, suburban and industrial areas.
Retail property management
Shops, hospitality, accommodation.
Get in touch to find out more about our commercial property management services…
Who we serve
Owners
- Some of our clients own substantial portfolios. The largest (Provincia Property Fund) is an industrial property fund with a portfolio valued at $74 million. The second and third largest portfolios (both private investors) are valued at $43 million and $19 million respectively.
- Some clients own a single property worth as little as $350k.
- Most of our commercial property management clients fall somewhere in between.
Tenants
- Our tenants (YOUR tenants!) are the industrious, hard-working risk takers who keep our country employed and economy afloat. They need you as much as you need them.
- We therefore serve both, acknowledging, however, that our fiduciary responsibility is to owners.
Get in touch to find out more about how our commercial property managers can add value for you…
What we do
Here is a brief overview of our commercial property management services…
Rent Collection
- We monitor and collect your rent, manage arrears and provide you with a monthly statement detailing rent received from your tenants and disbursements to your account.
Opex Collection
- We monitor and collect monthly opex payments from your tenants according to the opex budget we set annually.
Opex Management
- We hold the tenant’s opex funds in our trust account and take care of the day-to-day operating expenses, pay the bills (e.g. body corporate fees, Council rates, etc), set the annual opex budget and perform an annual wash-up.
Repairs & Maintenance
- Our reliable network of contractors and suppliers ensures repairs and maintenance are actioned promptly and at the best possible price. We supervise all work, and project manage larger works.
Rent Reviews
- We manage the rent review calendar and negotiate rent reviews on your behalf. Our effective rent review process and market knowledge ensures we maximise your returns and your property’s value.
Lease Negotiations & Lease Renewals
- We negotiate lease renewals and lease terms with existing tenants, and work with real estate agents to negotiate new leases and lease terms with new tenants.
- Our aim is always to maximise your return and your property’s value by influencing the lease. This is a core strength that really sets us apart.
Sourcing Tenants
- We brief real estate agents on your behalf to source tenants, and actively participate in the vetting process to ensure the best quality tenant occupies your property.
Body Corporate
- We attend and represent you at Body Corporate meetings, advocate on your behalf to ensure no unfavourable outcomes, and report back on any matters that arise.
Acquisition Assistance
- We provide a consulting service at no additional cost to help our clients work through potential property acquisitions, including risk mitigation and due diligence pointers.
- Because we are in the market and negotiating deals all the time, this is a particular strength that really sets us apart.
- If you want to take it a step further to minimise risk or take pressure off your valuable time, we offer a fee-based service to…
- advise on deal structures and terms before you sign on the dotted line, and
- undertake due diligence on your behalf.
Get in touch to find out more about our commercial property management services…
Case Studies
Commercial Property Management Case Study #1
34 Rennie Drive, Mangere, Auckland
Situation: The property is an industrial building with one tenant located in a prime industrial area in Mangere. The premises were under rented with a market rent review due in December 2020.
Actions: Due to Covid-19 and resultant business uncertainty, we negotiated to defer the review by two months in return for the tenant agreeing to our in-house detailed market rental assessment based on comparable evidence.
Our objective is always to maximise rental returns based on the area, building quality, location and market conditions because we understand that the value of a commercial property is underpinned by its rental return.
Outcome:
- We achieved a 21.5% increase in the annual rental return.
- We increased the property’s valuation by approx. $378,000.
- We had an accepting tenant that was satisfied with the rental negotiation, and for obvious reasons a very happy owner. Win-win!
Commercial Property Management Case Study #2
18 Cryers Road, East Tamaki, Auckland
Situation: The property is a 9,200m2 multi-tenanted industrial building in a typical office/warehouse configuration, situated in the East Tamaki industrial precinct. The warehouse is divided into two tenancies, 25% of the office space is divided into a third tenancy, and the rear yard is a fourth tenancy.
The largest tenancy was a logistics tenant occupying 4,500m2 of the net lettable area. They had outgrown the premises due to business expansion and were moving to bigger premises rather than renewing their lease in September 2020.
Actions: We negotiated with the other warehouse tenant who we knew was also experiencing strong growth. They were currently on a 3-year lease. We negotiated a new 5-year lease in exchange for them gaining an additional 700m2 of warehouse space.
We then used our extensive agency relations to tenant the rest of the vacant warehouse at market rent, within one month of it becoming vacant.
Outcome:
- We maximised the rental return, increased the weighted average lease term (WALT) of the property, and increased its market valuation.
- We minimised the vacancy loss to one month.
- We achieved a fully tenanted site during a regional Covid-19 Lockdown Level 2 & 3 period of uncertainty.
- We had two happy tenants and one very happy owner. Win-win!
Commercial Property Management Case Study #3
785 Great South Road, Penrose, Auckland
Situation: This industrial property is a 4,533m2 refrigerated distribution centre tenanted by Goodman Fielder, a multinational food manufacturer that has been operating since 1909.
Their lease had a 10-year initial term commencing in April 2010. A market rent review was due in February 2020 and the first of two 6-year rights of renewal was due in April 2020.
Actions: The tenant played hardball during negotiations, which took place during the Covid-19 lockdown period when Covid uncertainty was at its peak.
Despite the difficult circumstances, our industrial property management team successfully negotiated both a Deed of Renewal and a market rent review at the same time.
In return for the tenant renewing the lease and agreeing to a higher rental, the owner agreed to contribute up to $230k toward tenant improvements: an upgrade of the refrigeration system to a new, more environmentally-friendly refrigerant type, and other upgrade works to the premises.
The owner retained ownership of the tenant’s improvements, much of which was classified as chattels and therefore depreciable at attractive rates.
Outcome:
- Our commercial property managers successfully negotiated a 6-year renewal of the lease during the first Covid-19 lockdown period, and achieved a 9.7% increase in annual rent, from $475,000 to $521,180.
- We increased the weighted average lease term (WALT) of both the property and the owner’s total portfolio.
- As a result of the lease renewal and new rental, the market valuation of the property increased 10.4% – from $7.95 million to $8.775 million – an $825,000 increase.
- The tenant was happy they could upgrade the premises to suit their needs over the coming six years, and the owner was happy with the outcome. Win-win!
Get in touch to find out more about our commercial property management services…