Brisbane Industrial Property

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Tag: anchor tenants (page 1 of 2)

Anytime Fitness Snaps Up New Brisbane Space

Photo Credit: Ray White Commercial

Photo Credit: Ray White Commercial

 

A new 24-hour gym has opened this week in Mount Gravatt East after a leasing deal secured by David Highman of Ray White Industrial Milton.

Anytime Fitness, Mount Gravatt’s first premium 24-hour gym, has taken a 10-year lease plus options at 1480 Logan Road.

The building, renamed Continental Plaza as a nod to its heritage, is going through a large refurbishment to become a multi-tenanted retail mall.

The tenancy spans 511sqm over two levels and will have a high-quality fit-out and state-of-the-art equipment.

The site is close to Mount Gravatt Plaza and Central Fair Shopping Centre.

Neighbouring tenants include Salvos and Vinnies op shops as well as other small retailers.

For information regarding this transaction or any other industrial or commercial property needs, please contact us on (07) 3331 5444.

Choosing Anchor Tenants

Following on from yesterday’s post, we look more closely at choosing anchor tenants…..

When it comes to the performance of a retail property, the anchor tenant will be fundamental to the performance of the property. On that basis you should choose your anchor tenant with a view to the future of not just the property but also your holding plans relative to the property.

Key factors to bring into the leasing decision with the anchor tenant will be formulated and documented with the assistance of your property solicitor. One main factor to be concerned with is the term of the lease. Generally it is to be substantial and there should be an option for a further term if the tenant is appropriate for the long term occupancy and future of the building.

Anchor tenants can bring advantage to your market rent levels and vacancy factors for the property. A property with a good anchor tenant will attract the right tenants to the specialty stores and underpin the opportunity they have to trade. That being said, there is still a need to control tenant trade and tenant mix through a solid and strong permitted use clause in each lease. You do not want tenant product lines and offerings to cross over and destroy the trade of another tenant.

Anchor Tenants in Retail Property

 

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When it comes to the performance of a shopping centre the selection of the anchor tenant will have major impact on the rental and the specialty traders.

The anchor tenant will be the base of the branding for the centre and the major drawcard when it comes to customer visits. Here are some rules when it comes to the choice and integration of the anchor tenant into the retail shopping centre:

  1. The anchor tenant should be the right choice for the surrounding customer demographic
  2. The entrance to the anchor tenant premises should incorporate a degree of foot traffic that is captured and tracked past the specialty tenants. In that way the specialty tenants increase the dollar spend of the shopper.
  3. Specialty tenants that flank the entrance to the anchor tenant premises should be of high quality and of a complementary retail theme or offering
  4. The lease for the anchor tenant should be for a lengthy period of time (10 or 20 years is not uncommon)
  5. A base rental for the anchor tenant plus a turnover escalated rent will gear the tenant to the success of the overall property and shopping centre.
  6. New specialty tenants will want to know the longevity of the anchor tenant lease before they commit to a new occupancy.
  7. The rental levels for the anchor tenant will be adjusted and based on the large space under occupation. It will be less than the rents paid by smaller specialty tenants
  8. Recoverable Outgoings for the anchor tenant are frequently based on landlords rates and taxes plus building insurance only. This says that the landlord then takes a degree of outgoings cost on as a non-recoverable charge and as part of having the desirable anchor tenant in the property.

You can make a shopping centre the hive of activity providing you work and optimise the relationship of the anchor tenant and the specialties. In the end result the landlord benefits by stable occupancy, happy tenants, and good rentals.

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