Proactive Property Group
Commercial Leasing FAQs
Finding Premises FAQs
What is site selection?
Site selection is the process of choosing the most suitable location for a business based on various strategic, financial, and operational factors.
It is a critical decision that can significantly impact a company’s profitability and success as a lease is generally your 2nd largest business cost.
Site selection varies significantly depending on whether a business is a retail, office, or warehouse tenant. Each type of tenant has unique needs related to location, accessibility, visibility, and operational requirements.
What should I look for in retail premises?
Typical considerations for retail tenants looking for retail premises are:
- High Foot Traffic & Visibility – Retail businesses rely on customer traffic, so locations in shopping malls, main streets, or busy commercial areas are ideal.
- Target Demographics – The site should be near the business’s ideal customer base to maximize sales.
- Accessibility & Parking – Customers should have easy access by foot, car, or public transport. Sufficient parking is essential.
- Competition & Co-Tenancy – Being near complementary businesses (e.g., cafes near shopping centers) can drive more customers, but too much direct competition can be risky.
- Lease Costs & Incentives – Prime retail locations are expensive, so negotiating rent reductions, landlord incentives, and fit-out contributions is crucial.
- Store Layout & Space Needs – The layout should support product displays, customer movement, and branding.
Typical Locations:
- Shopping malls
- High streets
- Lifestyle centers
- Retail parks
What should I look for in hospitality premises?
Typical considerations for hospitality operators looking for restaurants, cafes, bars, hotels, and event premises are:
- High Foot Traffic & Visibility – Being in a busy location, such as a shopping district, main street, or mall, helps attract walk-in customers.
- Target Demographics – The location should align with the dining habits and income levels of the target customers.
- Accessibility & Parking – Easy access for customers and delivery vehicles is essential. Ample parking can be a deciding factor.
- Size & Layout – The space should accommodate seating, kitchen facilities, storage, and staff operations.
- Zoning & Licensing – Ensure compliance with food service zoning, health regulations, and liquor licensing (if applicable).
- Competition & Co-Tenancy – Being near other food businesses can drive foot traffic but too much direct competition may be a challenge.
- Outdoor Dining & Atmosphere – Locations with outdoor seating or scenic views can increase appeal.
Typical Locations:
- Shopping malls
- Main streets
- Tourist areas
- Business districts (for cafes)
What should I look for in office premises?
Typical consideration office tenants look for in office premises are:
- Professional Image & Brand Perception – The office location should reflect the company’s brand and industry reputation. A prestigious address can attract clients and talent.
- Accessibility for Employees & Clients – Proximity to public transport, highways, and parking facilities is important.
- Workplace Amenities – Employees benefit from nearby cafes, gyms, banks, and public services.
- Space Flexibility & Scalability – The office should allow for future business expansion or downsizing.
- Technology & Infrastructure – High-speed internet, meeting rooms, and IT facilities are critical for productivity.
- Lease Terms & Costs – Office leases should provide options for renewal, subleasing, and cost-effective maintenance.
Typical Locations:
- Central Business Districts (CBDs)
- Business parks
- Suburban office complexes
- Co-working spaces
What should I look for in industrail premises (warehousing or distribution)?
Typical considerations for warehouse or distribution tenants are:
- Proximity to Transport & Distribution Hubs – Easy access to highways, ports, airports, and rail lines reduces logistics costs.
- Storage & Space Requirements – Adequate space for inventory, machinery, loading docks, and high ceilings is essential.
- Zoning & Permits – The site must comply with industrial zoning regulations and environmental laws.
- Operational Efficiency – The layout should support warehouse workflows, including receiving, storing, and dispatching goods.
- Cost of Rent & Utilities – Warehouses often require lower rents but high utility usage, so evaluating electricity, water, and security costs is important.
- Security & Safety – Warehouses should have secure access, CCTV, and fire safety measures.
Typical Locations:
- Industrial zones
- Logistics hubs
- Ports and airport districts
- Outskirts of major cities
What are common mistakes made when selecting premises?
Common mistakes include:
- Choosing the wrong location
- Agreeing too higher a rental
- Not having rights of renewal
- Not limiting Outgoings or Opex
- Agreeing to a lease that doesn’t meet current or emerging business needs
- Underestimating fitout costs
- Understimating total occupancy costs
- Signing a lease without fully understanding the terms
- Failing to negotiate flexible lease terms
- Overlooking exit strategies.
A thorough due diligence process and professional advice can help avoid these pitfalls.
How do you help business find the right premises?
I specialise in helping businesses secure the ideal commercial space to thrive.
Whether you’re a retailer, franchise, hospitality operator, office or warehouse tenant, I take the stress out of finding and negotiating leases so you can focus on running your business.
How I Help:
✅ Understanding Your Needs – I take the time to understand your business, target market, and operational requirements to identify the best locations.
✅ Site Selection & Market Research – With deep knowledge of the commercial property market across New Zealand, I analyse foot traffic, demographics, and competitor locations to find the most strategic premises.
✅ Lease Negotiation – I handle all lease negotiations to ensure you secure the best possible terms, including rent, lease duration, incentives, and landlord obligations.
✅ Fit-Out & Compliance Support – Need help with the fit-out process? I can guide you through building requirements, council approvals, and landlord agreements to get your space ready for business.
✅ Lease Management & Renewals – Already have a lease but need better terms? I assist with lease renewals, rent reviews, and restructuring to optimize costs and protect your interests.
With my expertise, market insights, and strong industry connections, I make finding the right premises easy, cost-effective, and stress-free. If you’re expanding, relocating, or securing your first commercial space, let’s talk about how Ican help.
Lease Negotiation FAQs
What is lease negotiation?
Lease negotiation is the negotiation of the commerical and legal terms of your lease.
Before entering into a lease you have an opportunity to negotiate with the landlord (or their real estate agent) to reach an agreement on the commerical and legal terms of your lease so that your lease meets your business needs.
Are commercial leases negotiable?
Commercial leases are negotiable.
You may wish to negotiate your commercial lease to:
- Reduce the asking rent
- Limit / change the Outgoings
- Limit your personal guarantee
- Change the term of your lease
- Change the method of rent review
- Change the periods of reviews
- Limit your liability following assignment
- Limit reinstatement olbigations
- Increase your rights of renewal
How can I negotiate the best lease terms for my business?
Negotiating a lease involves understanding market conditions, assessing landlord incentives, and ensuring key terms align with your business needs.
Focus on securing favorable rent, lease duration, renewal options, rent review mechanisms, and clauses related to fit-out contributions and exit strategies.
Engaging a lease negotiation expert can help you achieve the best terms.
What are common mistakes businesses make when leasing commercial space?
Common mistakes include signing a lease without fully understanding the terms, underestimating total occupancy costs, choosing the wrong location, failing to negotiate flexible lease terms, and overlooking exit strategies.
A thorough due diligence process and professional advice can help avoid these pitfalls.
How can your lease negotiation services save my business money?
I can save your business money by securing better commercial terms that align with your needs and financial goals.
I have in-depth knowledge of market rates, lease structures, and negotiation tactics, allowing me to ensure that you’re not overpaying for your premises.
By negotiating favorable rental rates, lease renewals, and even rent reductions or incentives, I help lower your overall operating costs.
Plus, I address the hidden costs or unfavorable clauses that could cost you down the line, ensuring you get the best possible deal for your business.
I leverage market insights and expert negotiation strategies to lower your rent, secure rent-free periods, reduce outgoings, and improve lease terms.
I have helped many clients save thousands annually by optimising their lease agreements.
If you want to know more, give me a call and let’s chat.
What are Outgoings or Opex?
Outgoings or Opex are the premises expenses such as rates, insurance, repairs and building maintenance, etc .
If you have a net lease you pay outgoings on top of rent to the landlord.
You may pay outgoings monthly and the landlord does an annual reconciliation, or, you may pay outgoings when the landlord invoices you for a particular outgoing.
If you have a gross lease, then the landlord pays these costs (and builds the cost into the rental payments).
What is a rent review clause?
A rent review clause details when and how your landlord can change the premise’s rent.
There are 3 common rent reviiew methods:
- Market rent reviews – your rent increase is based upon what other tenants are paying for comparable premises
- Fixed increase reviews – your rent increases either by a percentage increase or a fixed sum increase
- CPI Increase – your rent is increased by the changes in CPI over the corresponding period
Lease Restructuring FAQs
What exactly is commercial lease restructuring, and how do I know if my business needs it?
Commercial lease restructuring is the process of renegotiating your lease terms, such as rent, lease duration, operating expenses, rent reviews, or rent review structure, to make your occupancy costs sustainable again.
I assess your financial position, benchmark your current rent against the market, identify pressure points in your lease, and develop a commercial case your landlord can agree to. Then I lead all negotiations on your behalf to secure more manageable terms and protect your business.
Can my landlord refuse to renegotiate my lease, and what happens if they do?
Landlords can refuse, but in most cases they are willing to engage when presented with a clear, evidence-based restructuring proposal—especially one that reduces their risk of vacancy or arrears.
My role is to frame the conversation commercially, not emotionally, so your landlord understands that restructuring creates a better outcome for both parties. If initial discussions stall, I use additional negotiation strategies backed by data, market evidence, and risk analysis to re-open the conversation and move it toward a productive outcome.
How do I know if my lease is actually unsustainable and needs restructuring?
A lease is unsustainable when your occupancy costs place ongoing pressure on cashflow, profit, or business viability. Common signs include: rent sitting above market, occupancy costs rising above industry benchmarks, rent reviews you can’t afford, declining margins, or increased financial stress across your network.
If you’re losing sleep, regularly short on cash, or worried the lease may put your business at risk, it’s likely time to explore commercial lease restructuring. I can assess your position quickly and tell you what options are available.
Will asking for a rent reduction or new terms put my tenancy at risk?
When approached professionally and backed by a commercial case, lease restructuring does not put your tenancy at risk. In fact, landlords often prefer renegotiation over vacancy, arrears, or business failure.
I manage the entire communication strategy to ensure the process is constructive, respectful, and commercially sound. You remain protected, and I ensure the discussion strengthens, not jeopardises, your long-term tenancy.
How long does the lease restructuring process usually take?
Most commercial lease restructuring engagements take 2–6 weeks, depending on the responsiveness of the landlord, the complexity of the lease, and the evidence required to support your case.
I streamline the process by preparing all financial analysis, documentation, and negotiation steps upfront, ensuring your restructuring progresses efficiently and minimises disruption to your business.
What kind of financial information do I need to provide to support a restructuring request?
Landlords typically want to see clear, factual evidence that the current lease terms are unsustainable. This may include trading figures, occupancy cost ratios, profit-and-loss statements, rent benchmarks, market comparisons, and any recent financial impacts on your business.
I guide you through exactly what to provide and what not to provide, so we present a strong, commercially compelling case that supports a favourable restructuring outcome.