An election policy announced on Sunday would change how commercial leases work in New Zealand. Two parts. Rent reviews on leases already signed could go down, not just up. And if a CBD shop's been empty for more than a year, the council could give the landlord 8 weeks to find a tenant, then auction off a lease on the building.
My area is residential, so I asked someone who works with commercial leases every day. My son Alex is a commercial broker at James Group Real Estate in Auckland. We go through what a ratchet clause actually is, why banks want one, how a commercial building gets valued, what happens to that value when the rent drops, what landlords would do on the next lease, and who actually turns up to a council lease auction. Then the honest bit: why shops really sit empty, and whether any of this fills them.
Alex Kenel is an industrial property broker with James Group Real Estate, specialising in Penrose, Onehunga and Mt Wellington - the core of Auckland's industrial market. He works with owner-occupiers, landlords and tenants on leasing, sales and purchases, with a background in industrial valuation.
If you're looking at industrial property in the area, or just want a straight read on rents, values and what's actually moving, get in touch:
📞 022 369 0406
✉️ alexkenel@jamesgroup.co.nz
🔗 https://linkedin.com/in/alexkenel
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