Q&A with Thomas Huxley
Q. What is the most extreme example you can think of when it comes to tenant or landlord responsibility for repairs or remediation?
A. “A Centrelink building in our portfolio, was impacted by the recent floods. The flooding was a 1/100 year event. The Landlord is liable to repair flood damage to the property at a cost of over $800k. Luckily, building insurance is in place for the Landlord to meet their obligation. The internal fit-out had to be removed and replaced. The tenant is responsible to replace their fixtures and fittings.”
Q. When it comes to disputes, how can an Asset Manager assist?
A. “Our expertise lies in problem solving and dispute resolution. Throughout the pandemic our Sydney office alone managed over 250 requests for rent relief, this involved careful negotiation between both landlord and tenant to achieve both reasonable and favourable outcomes for all parties.
There are many benefits to keeping the relationship between landlords and tenants harmonious, so both parties know we are going to be fair, reasonable, and accurate. Imagine the time and incredible expense for the tenant and landlord if this became a needless dispute between legal firms fighting for their client.”
Q. What is another example of a cost saving that you can offer as an Asset Manager?
A. “Because we manage so many commercial properties – we’ve been with some clients for more than 15 years on the same properties – we have a trusted network of suppliers. By using the same suppliers for different commercial properties – our network has skillsets from repairs to major extensions or rebuilds – we can get our clients some major cost savings. Our clients also know that our suppliers will be excellent in their roles because a good supplier enhances our reputation, saves us time, and prevents headaches.”
Q. What is one of the most satisfying parts of your role?
A. “It is the value-add that Burgess Rawson can provide to commercial property owners. As Asset Managers, we have unique oversight of a huge variety of properties. We know which ones perform well and why. It means we can speak to owners with great authority about ways they could add capital value to their properties. It could be a split of the premises, a potential for development, capital improvements, or a better tenant mix. We don’t just sit back and take a fee, we are encouraged to look for best practice for all of our clients.”
Q. What is some sound advice for owners and tenants alike?
A. “Adopt strong financial fundamentals, take the time to prepare and implement a budget, and manage outgoings, efficiency is key.”
Contact Thomas to discuss the management of your commercial property.