ADAM LEISHMAN — THE COMMERCIAL GUYS
Commercial Property Does Not Exist in a Silo
Commercial property decisions rarely sit neatly within one box.
A lease can affect finance, valuation, tax, insurance and future saleability.
A sale can have implications for capital gains tax, GST, ownership structures, debt and succession planning.
An issue with a body corporate might appear administrative, but the real question could relate to legal rights, maintenance obligations, insurance or the operation of the scheme itself.
That is why experience in commercial property is about more than understanding the transaction in front of you.
It is about understanding the wider environment around the property, recognising when another issue needs attention, and knowing when the right specialist should be brought into the conversation.
Understanding More Than the Transaction
Over the life of a commercial property, an owner may deal with accountants, solicitors, financiers, valuers, insurance brokers, body corporate managers, planners, surveyors, engineers and other specialists.
A commercial property adviser does not replace those people.
But they should understand enough about the issues surrounding the property to recognise when they matter.
That can include ownership structures, finance, taxation, land tax, lease terms, body corporate obligations and knowing when a matter moves beyond day to day asset management and requires specialist advice.
Sometimes the most valuable advice is not the answer itself.
It is knowing which question needs to be asked next.
Ownership Structure Matters
Commercial property may be owned personally, through a company, trust, self managed super fund, corporate trustee or another structure.
Those structures can affect taxation, financing, liability, succession planning, land tax and who actually has authority to make decisions.
From an agency and asset management perspective, that matters.
Before a document is signed, a guarantee is given, a property is sold or a lease is varied, it is important to understand who owns the asset, in what capacity they own it, and who has authority to act.
The agent should not be giving accounting or legal advice, but they should be experienced enough to recognise when those issues need to be considered.
Finance, Tax and the Lease Are Connected
A lease is not simply a document that determines rent.
It can influence how a lender views a property, how a valuer assesses income security and how a buyer prices risk.
The quality of the tenant, remaining lease term, options, guarantees, rent reviews, outgoings recovery and arrears history can all matter when a property is refinanced or sold.
Taxation can also sit quietly behind what appears to be a straightforward property decision.
Capital gains tax, GST, depreciation, land tax and the timing of a transaction can all be relevant.
The role of the commercial property adviser is not to replace the accountant.
It is to understand enough to say, "Before we do this, you may want to speak to your accountant."
That conversation is far more useful before a decision is made than after the paperwork has been signed.
Body Corporate Management and Commercial Asset Management Are Not the Same Thing.
This is one of the areas that is most commonly misunderstood in commercial property.
A body corporate manager and a commercial asset manager perform very different roles.
The body corporate manager is generally focused on the administration of the scheme. That can include meetings, minutes, budgets, levies, records, resolutions and helping the body corporate carry out its statutory functions.
The commercial asset manager is focused on the owner’s individual property.
That means the tenant, lease, rent, arrears, maintenance, expenditure, contractors, vacancy, leasing strategy and overall performance of the asset. In a commercial complex, those two roles regularly intersect. A leaking roof may involve common property, but it also affects the tenant and the owner’s income.
A signage request may require landlord consent, body corporate approval and an understanding of what the lease allows. Car parking, insurance, exclusive use areas, air conditioning, services, access, repairs and improvements can all involve both the owner and the body corporate. That is where a deeper understanding becomes valuable. It is not enough to simply forward an issue to the body corporate manager and hope they deal with it.
A good commercial asset manager should be able to identify who is responsible, understand how the issue affects the owner’s asset, assist the body corporate manager where appropriate, and make sure the matter keeps moving. Sometimes that means working with the committee. Sometimes it means reviewing the relevant documents. Sometimes it means bringing in a solicitor or another specialist. Understanding the difference between body corporate management and asset management can save owners considerable time, cost and frustration.
Knowing When to Call the Solicitor
There are also many situations where part of an issue can be managed efficiently by the asset manager and another part should be dealt with by a solicitor.
An asset manager may be able to establish the facts, review the lease operationally, obtain payment history, speak with the tenant, gather correspondence and prepare the background information.
If formal legal interpretation, enforcement, breach action or litigation is required, that is where legal expertise becomes appropriate.
Using the right person for the right part of the job can produce a better and more efficient outcome.
Experience is often about knowing the difference.
The Network Around the Property
Commercial property is rarely managed by one person alone.
Over the years, we have worked alongside commercial property lawyers, accountants, finance brokers, lenders, insurance brokers, valuers, body corporate managers, planners, engineers, building consultants and other specialists.
Some are people our clients use.
Some are people we work with professionally.
Others are people Adam uses personally.
If you ever need to connect with someone, ask us.
Whether you are looking for an insurance broker, finance broker, commercial property lawyer, valuer, accountant, body corporate manager or another specialist, there is a good chance we can point you toward someone who may be suitable for your property, needs or circumstances.
We cannot promise that every contact will suit every situation, but we can often make an introduction that helps get the right conversation started.
More than Buying, Selling and Leasing
Commercial property advice should extend beyond the immediate transaction.
The best outcomes usually come when someone understands the asset, the lease, the ownership structure, the funding, the tax considerations, the legal framework and the people involved well enough to see how the pieces connect.
That does not mean one adviser should try to do everything.
It means they should know enough to recognise what matters, ask the right questions and bring the right people into the conversation when required.
That broader understanding is an important part of how we approach commercial property at The Commercial Guys.
