Maximised returns through smart subdividing and re-leasing
28 July 2017
The power of using professional property managers.
In late 2014, a substantial industrial building in Tauranga, with almost 5,000m2 of net lettable area, had been vacant for close to two years. The owner was referred to PMG by both their accountant and their solicitor and approached PMG to take over management of the property.
Working with the owner, we formulated a strategy that involved subdividing the property into smaller more marketable sizes which would diversify their risk across multiple tenancies and add value to their investment.
• We secured an initial tenant for 1167m2. Knowing that the greatest demand for medium-sized industrial tenants was in the 350m2 to 400m2 range, we quickly created three leasable spaces of around 375m2.
• A substantial first floor office and cafeteria area was subdivided to provide office accommodation for three of the ground floor industrial tenants and a standalone office tenancy.
• Developed the property into 10 varyingsized spaces, the smallest being 135m2 and the largest 1167m2.
Transforming this property from a 5,000m2 single-tenancy, industrial property to a multi-tenanted mixed-use property significantly increased its rental income and market value.
If you are interested to know more about our property management services please contact Brian Berry on 07 928 1305 or firstname.lastname@example.org for the Central North Island or Steve Williams 09 320 5128 email@example.com for Auckland and Nationally.