Proactive Property Group
Frequently Asked Questions
Finding Premises FAQs & Lease Negotiation FAQs
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.
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
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)
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
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
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.
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 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.
Commercial leases are negotiable.Â
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
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.
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.
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. Â
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.
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).
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