Savvy property owners pull returns from their buildings’ ‘skin’
Jody Robb | WEEKEND REVIEW
Savvy commercial and industrial property owners looking to optimise returns from their property assets are exploring extra income streams to supplement tenant rentals, with several options finding good traction in the current market.
Embedded utility networks, telco antennae, naming rights, lobby-based coffee outlets and billboard space are all examples of added value “clip ons” that a commercial building owner may be able to pursue.
Bayleys Real Estate national commercial director John Church says astute commercial property landlords are discovering ways to pull some return from the building’s “skin” or from a reconfiguration of internal dynamics.
“In the heady pre-global financial crisis days, a marble entry foyer in a commercial building was seen as a sign of opulence,” says Mr Church.
“Today, that space is more likely to be home to a café with upside for both the property owner and the café operator.
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