NOVEMBER MARKET WRAP-UP
FROM ADAM LEISHMAN – THE COMMERCIAL GUYS
November showed a definite shift in the leasing landscape. Not panic. Not collapse. But clear tightening across parts of the SME sector, now supported by the latest national insolvency and ATO data.
Some tenants are still performing strongly. Others are feeling pressure. And the numbers confirm a significant rise in restructuring, administration and liquidation activity – the highest levels in 25 years.
For property owners, understanding what type of pressure is emerging – and how to identify it early – is essential to protecting your rental income and asset value.
1. What we’re seeing on the ground
* Strong operators are taking advantage of reduced competition.
* Others are showing strain as margins tighten.
* More tenants are requesting shorter terms or reduced commitments at renewal or option exercise.
A ripple is moving through the tenant market – and visibility is increasing.
2. The Insolvency Picture – Updated full-year data
Corporate Insolvencies
FY2024-25 recorded 14,722 corporate insolvencies, the highest total in 25 years.
Small Business Restructuring (SBR)
More than 2,200 SBR appointments in FY2024-25 – up more than 150% year-on-year.
ATO Enforcement & Debt Pressure
* 84,529 Director Penalty Notices issued in FY2024-25
* $4B+ in associated tax liabilities
Strong increase in businesses entering insolvency with *ATO debts above $250,000**
Hardest-hit sectors: construction, hospitality, retail, transport & logistics.
3. Quick Explainer – Administration, Liquidation, SBR
Small Business Restructuring (SBR)
Company stays in control while proposing a deal to creditors.
Implication for owners: elevated risk, but survival possible.
Administration
Administrators take control and drive fast decisions.
Implication: uncertainty around rental continuity and occupation.
Liquidation
Business ceases trading and is wound up.
Implication: tenant exits; your security becomes everything
4. Early Warning Signs Worth Noting
*Repeated late payments
* Changes in communication behaviour
* Requests to alter lease terms at renewal or option exercise
* CreditorWatch alerts
* ASIC changes to directors, ownership, or structure
* Payment defaults or court actions
5. Security & Oversight – What Actually Matters
* Appropriately sized cash bond
* Personal / director guarantees
* Clear default and possession clauses
* A refined, tested arrears follow-up process
* Proactive tenant monitoring, including automated alerts for ASIC changes, defaults, court actions, and structural shifts – usually within 48 hours
These are the real levers that protect owners during tenant stress.
6. How we manage this cycle for your asset
* Refined arrears follow-up process
* CreditorWatch alerts for every tenancy
* ATO-behaviour monitoring across the portfolio
* Automated alerts for director, entity and ASIC changes
* Immediate engagement when any red flag appears
* Consultation with owners before tenant contact
* Security and bond review at every renewal or extension
Our management model was built by a property owner for property owners – designed for cycles exactly like this.
7. Final thoughts
When the economy shifts, when insolvencies rise, when pressure hits, when tenants wobble – that’s when you discover which managing agencies have the systems and processes that genuinely protect your asset, instead of simply processing paperwork.
It’s also in times like this that the difference between self-management and effective external asset management becomes essential.
