The ultimate guide to Office Leasing in Brisbane · building owners and landlords have become very proactive. Landlords are committed to finding better ways to present office spaces,

The ultimate guide to

Office Leasing in Brisbane

The ultimate guide to office leasing in Brisbane © Caden 2018

The ultimate guide to office leasing in Brisbane © Caden 2018

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CONTENTS

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Questions to ask your leasing agent

Getting the best deal

Leasing mistakes to avoid

Wrap up and next steps

Introduction to the leasing guide

Market overview

Getting the brief right

Overview of the leasing process

Choose your location

About Caden

Leasing in Brisbane

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We also know that office space has a direct impact on:• Staff productivity;• Company culture;• The way your customers, suppliers and stakeholders perceive your

business.

Your office space is your second home, and it’s for these reasons that it’s critical you find the right ‘home’ for your business.

This ultimate guide to office leasing in Brisbane has been compiled with the sole purpose of making your next office move as straightforward as possible. We’ve covered everything, from setting the right brief at the outset, to the questions to ask and some common leasing mistakes to avoid.

We’ve based this on our extensive knowledge of leasing in Brisbane, as well as our unique approach to leasing that combines strategy and innovation to deliver a better result for clients.

In this step-by-step guide, we walk you through each stage of the leasing process to ensure you secure the right office space for your business.

The ultimate guide to office leasing in Brisbane © Caden 2018 1

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With higher than average vacancy rates, proactive landlords and favourable terms to be negotiated, it’s a great time to secure office space in Brisbane’s CBD.

Market Overview2.

Over the last five years, Brisbane has experienced a sustained period of high vacancy rates in the commercial office leasing space. In some industries, Technology is driving operational change. There is greater output requiring less resources. As a result, many businesses are also adopting new ways of working and becoming more efficient in the way they utilize their office space. As business-es change their structure, it is requiring more leasing deals to fill the vacancies that have been created by a steady supply of commercial office space that has been developed within the CBD in recent times. Increased competition between landlords to secure new tenants is creating opportunities for businesses to lease space with favourable terms.

As competition has increased, building owners and landlords have become very proactive. Landlords are committed to finding better ways to present office spaces, including the creation of contemporary speculative fit-outs for prospective tenants to consider. Many of the CBD buildings have seen general upgrades too, with revamped foyers, elevators and other communal spaces, making these buildings an attractive proposition for tenants looking to move into the city.

PROACTIVE LANDLORDS

BUSINESS CONFIDENCE IS IMPROVING

HIGH VACANCY

RATES

Overall, business confidence in Brisbane is improving. After the economic and political uncertainty of the last few years, the city is now experiencing a period of stability and growth for many businesses. This is also having a positive impact on tenant demand, with businessesmoving into the city and securing larger premises as they grow.

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• How many car parks do you require for staff?• How many for visitors?

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• What is your annual budget for office leasing?

• When do you need to move?

• What lease term (years) can you commit to?

• What is your preferred location?

• How many staff fo you have now?• How many staff will you have over the next 3-5yrs?

• How many workstations do you need?• How many offices do you need?• Do you need a reception desk or just waiting area?• How many meetings rooms do you need?

• Are you willing to pay for a speculative fit out* or are you content with an existing fit out*?

• Would you prefer a standard pre-existing fit-out, a high quality fit-out or a custom designed space?

• Considering building grades*, do Premium, A or B Grade standards best represent your business?


Getting the Brief Right

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Use the adjacent checklist to start to formulate your brief.

Some of the key leasing terms are explained on the last page of this eBook. If you’re not sure of your answer, talk to your leasing agent who can help you refine your brief.

So, you’re ready to start your journey to a new office? One of the most important parts of the entire leasing process is getting the brief right. Having a clear, detailed understanding of exactly what you are looking for right from the start will ensure that your leasing agent can narrow the search, show you the properties that best match your requirements and ultimately find the perfect office for your business.

Create your brief- Use our Office Space Calculator to find out how much space your business needs;- Create your office space brief using the checklist on the previous page (p3);- Discuss your brief with a leasing agent. The agent will help you refine your brief, and will start compiling a list of suitable

Initial negotiations- Once you identify your preferred property, your agent will request initial Offers to Lease from the building owner or landlord;- Offers to Lease are non-binding agreements that establish the terms upon which the lease will be drafted. They represent the best chance to negotiate terms and secure a strong position;- Your agent will have a good understanding of the market conditions, where you can push in your negotiation and where the landlord will stand firm.

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While every leasing process may vary slightly, here is a

simple guide showing the most common process in leasing

office space.

Leasing Process Overview

Review prospective properties- Your leasing agent will provide a comprehensive list of available offices based on your brief;- From this list, determine which properties you will inspect. Don’t be afraid to delete any properties that aren’t right;- It’s not uncommon for the initial inspection list to include more than 10 properties; - Property inspections will take place over a few hours on the same day, making it easier to compare options;- Make sure you are satisfied that you’ve seen enough properties in order to make an informed decision; - Important note: As inspections take place, the brief may change so your agent will introduce new properties for consideration as required;- Seek internal approval within your business for your preferred option.


Finalising the lease- Once the terms have been agreed, the Offer to Lease will be signed by both parties;- A deposit of the first month’s rent will generally be required at this stage and the tenant will instruct their solicitors to prepare the lease;- Final amendments to the lease will be negotiated, ideally with the help of an experienced property lawyer;- The final lease documents can then be distributed, along with supporting documentation in the form of the Bank Guarantee and insurance certificates;- Once all three documents are executed and delivered to the Lessor, access to the tenancy will be granted.

Review prospective properties

Create your brief

Initial negotiations

Finalisingthe

lease

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Choose Your Location

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New buildings and new precincts are emerging, each offering their own unique advantages for business and employees alike. We’ve put together an overview of the major precincts within the CBD to help you find the perfect location for your business.

The Brisbane CBD is growing.

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Legal Precinct

UptownPrecinct

Financial Precinct

Midtown Precinct

Govt.Precinct

RetailPrecinct


Brisb

ane

River


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Amenities • Easy access to rail, bus and

ferry; • Many food, beverage, fitness

and entertainment options nearby.

Financial Precinct

Major tenants

Legal Precinct

Amenities• Roma Street Transit Centre;• Roma Street Parklands;• Snap Fitness & F45.

Major tenants

Uptown Precinct

Major tenants

CBD

Pre

cinc

t Det

ails

Amenities • Plenty of close food and

retail; • Close to public transport • (Adelaide and Ann Street

major transit corridors for buses).


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Midtown Precinct

Amenities• Easy access to gyms, food,

beverage, and entertainment options;

• Good bus access, but further away from rail and ferry;

• Close to Queen Streetall, Riverstage and Botanical Gardens.

Government Precinct

Amenities• Botanical Gardens; • Riverstage; • Queens Wharf & Casino.

Retail Precinct

Amenities• Close to rail, bus and ferry;• Queen Stret Mall; • Easy access to gyms, food,

beverage and entertainment options.

Major tenants Major tenants Major tenants

Questions to ask your Leasing Agent6.Your leasing agent will be there to help you through every stage of the leasing process. They will be your guide and answer any questions you may have. Remember, your leasing agent is an expert in the local market, and the commercial leasing process.

Finding the right space:

• How much space do we really need? Do we need to revise the amount of space we’re looking for?• If we fit out our own office, do we pay the full cost of this, or is some of the expense offset by the landlord? • Based on our requirements and budget, are we better off in a fully fitted out office, or an empty one that we can design to suit our needs? What are some of the pros and cons to consider?

• How far ahead of our current lease expiry should we start looking for office space? • How long will the lease term be? Will this vary for fitted versus non-fitted office space?• What are our options if we only want a short term lease?• What happens at the end of the lease? Will we be able to extend our lease, or do we need to negotiate that later? • What happens if we need to get out of the lease before the end of the lease term?• What level of security will we need in place (eg. bank guarantees)?• Once we have signed an Offer to Lease, what are the next steps before we can move into the office?

Understanding the leasing process:

• How many different spaces or options do you anticipate there will be to choose from? • Do we have to pay a deposit when leasing the space? • What additional costs (eg. cleaning, electricity) will we need to pay in addition to the rent costs?• Are there hidden costs we need to be aware of? • Are there any incentives available, and how are these incentives structured?

Getting the right deal:


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Getting the Best Deal7.


Now is a great time to lease

Here are our steps for success when leasing your new office space.

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Know how much space you need

Your agent can’t help you find the right space if you don’t have a clear and accurate brief. Start by being very clear with your team about what your business needs in an office now, and into the future. While it can be difficult to know for sure what your future needs will be, your agent can help you identify options that provide some flexibility to grow or change your office space as needed.

HOT TIP: Use our checklist on page 4 to refine your brief. Then talk to an agent and refine your brief further as needed.

This is a big one. Determining exactly how much space you need can be hard, but you can break it down using our briefing checklist. Be sure to account for any growth, or contraction, you think you might experience in the coming years. It’s also fine to start off with a broad range and then refine that further with your agent.

HOT TIP: Our handy office space calculator will give you a general guide to the amount of space you should be looking for, and will help account for some of the extras, like storage, that every office needs.

With high levels of vacancy in the Brisbane CBD, and proactive landlords upgrading buildings and providing new amenity, now is a great time to secure office space. Building owners are keen to do deals and you could find your perfect office, in an excellent location.

HOT TIP: It can take up to 12 months to find and secure new office space. If your current office lease is due to expire in the next 12-24 months, consider starting the process now to ensure you have enough time.

Get the brief right Ask the right questions

Trust your agent to help you refine your brief and identify the best space, in the right location for you. Be sure to identify any additional costs that you will be required to pay, including cleaning and electricity, so there are no surprises after you move in.

In addition to your leasing agent, you may consider hiring a tenant representative or broker who can better navigate the leasing process. These professionals are experts in the local market, can help you refine your brief and negotiate a great deal for your business.

HOT TIP: Your agent or tenant rep will also help you negotiate terms with the building owner or landlord, ensuring the best possible outcome for everyone.

Leasing Mistakes to Avoid

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Of course if you’re following this guide, you’ll be on the right track to lease a great new office for your business. However, there are a few pitfalls that are important to be aware of as you navigate the commercial leasing process.


Here are some leasing mistakes to avoid:

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Understand the lease terms• Always seek independent legal advice from an expert property lawyer

before signing a commercial lease. • Ensure that you understand the terms, including the length of the lease

term, exit arrangements and costs involved. • It’s possible to negotiate better terms for any aspect of the lease that

might have a negative impact on your business.

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Ask yourself or your agent the following questions:• Is it the right location for your team and your clients?• What other expenses will you incur, including electricity, data, end of trip facilities and cleaning?• Is there any flexibility with the amount of space, or the lease term, if things change in your business?

Consider the whole deal• Ensure you have a good understanding of all factors of the leasing

deal and ensure it’s the right office for your business.

Don’t rush into a deal • Be careful not be tempted to sign on the dotted line quickly once you

have found an office you like. • It’s important to follow each of the steps in the leasing process,

including seeking independent advice, to ensure there are no nasty surprises down the track.

• Take your time, and trust the process.

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It’s a great time to lease space in Brisbane’s CBD, so start the search

for your new office today.

Our mission is to find the right space for your business.

Established in 2014, Caden is Brisbane’s first independent office leasing business. Our team is obsessed with office

space because we know that your office shapes your company culture, impacts productivity and ultimately

contribute to your success.

When you work with us, you will access our personalised leasing service that is highly responsive to your needs,

allowing you to secure your new office faster.

If you’re ready to start the search for the perfect newoffice for your business, give Caden a call today.

We have access to every available property across the Brisbane CBD.

Contact our leasing specialists on (07) 3014 5406, email at [email protected] or

visit our website: www.caden.com.au.


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About Caden9.


In this guide, we’ve provided an overview of the steps to follow, as well as some resources to help you successfully secure your new office, including:

• Create your office leasing brief (using the checklist on page 3);

• Check how much space you need using our office space calculator;

• Engage an agent like Caden to help you identify and inspect properties that match your requirements;

• Consider the Brisbane CBD locations that work best for your staff, clients and suppliers;

• Negotiate the terms of your lease;

• Seek legal advice from a property lawyer to finalise your lease.

Wrap up and Next Steps

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Leasing office space is a major investment for any business, and it’s important to take the time to get it right. While it can seem daunting at the outset, we see this is an opportunity to find a new home for your business, where your team will thrive and your clients will be happy to visit.

To start your leasing journey or to learn more, contact our leasing specialists on (07) 3014 5406 or at

[email protected]

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The information in this document is general in nature and is a guide only. It does not take into account your individual circumstances. Before acting you should check the accuracy of the information and seek your own independent financial and legal advice. The information must not be relied upon to make any investment decisions. Caden Office Leasing and its agents will not be liable for your failure to verify the information or seek appropriate advice.

COPYRIGHT©: Caden Office Leasing all right reserved. No part of this work may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems) without the written permission of Caden Office Leasing.


To start your leasing journey or to learn more, contact our leasing specialists.

David ProsserDirector

+61 412 700 [email protected]

Lewis HarperSenior Leasing Executive

+61 437 187 659 [email protected]

Chris ChapmanExecutive

+61 401 153 [email protected]

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Office Space Calculator

Click below to find out how much space you need.

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Leasing Opportunities

Commercial Leasing Terms

The features within a building, including parking or end of trip facilities, as well as proximity to transport or retail outlets.

An alternative to providing a deposit or bond directly to a supplier or vendor. It is an unconditional undertaking given by the bank, on behalf of our customer, to pay the recipient of the guarantee the amount of the guarantee on written demand.

An office that is already fitted out with workstations, offices and other fixtures.

A bonus or discount offered to a tenant in consideration for their entry into a lease with a particular landlord, including fit-out expenses and rent free or discounted rent periods.

A document that provides information on specific insurance coverage, including verification of the insurance, types and limits of coverage, insurance company, policy number and the dates covered.

Leasing agents work with tenants to locate office space, and with property owners to find good tenants for their buildings.

Bank guarantee

Insurance certificate

Lessee

Speculative fit-out

Fixed, non-cancelable period for which a lease agreement is in force. Also called lease period or lease tenure.

The tenant; a person who holds the lease on a property.

The landlord; a person who leases a property to another person.

A non-binding agreement that establishes the terms upon which the lease will be drafted.

A new office fit-out constructed by landlords without any pre-commitment to the space by a prospective tenant. Also known as a ‘spec fit-out’.

A commercial property expert who can help tenants find and secure commercial office space, and negotiate leases.


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Existing fit-out

Incentives

Leasing agent

Lease term

Lessor

Offers to Lease

Tenant rep or broker

Amenities

Documents

The ultimate guide to Office Leasing in Brisbane · building owners and landlords have become very proactive. Landlords are committed to finding better ways to present office spaces,