How important is portfolio management in a business? For large companies without dedicated resources, managing a property portfolio can be overwhelming. However, aligning property strategies with business goals is crucial.
For companies like CouriersPlease, Australia’s fastest growing franchised courier and parcel delivery service, managing multiple properties presents unique challenges.
How did TMX save CouriersPlease over $600,000?
TMX Director of Portfolio Management, Tracy Armstrong, has over 20 years of property experience leading occupier property portfolios with a thorough understanding of organisational dynamics and strategic property portfolio alignment.
She worked with CouriersPlease to manage their portfolio of 17 properties with strategic property advice.
Tracy shares her insights into how forward-thinking occupiers stay ahead:
Plan Early to Gain Leverage
“Time is leverage,” Tracy said.
Ms Armstrong highlights a recurring issue – businesses waiting until the last minute to address their property needs.
“Recently we were asked to step in and help an organisation that had three weeks left on their lease,” she said, “I see so many organisations leaving it too late. This leads to financial and operational compromises which compound over an occupier’s lease term, often 5-10 years.”
Planning is crucial, it really needs to begin 24 months ahead to give occupiers time to maintain business continuity while exploring and financially assessing all ‘stay vs. go’ options.
Many organisations overlook critical dates in lease agreements, but TMX prevents this with regular portfolio reviews to track and manage key terms.
Early preparation has delivered significant wins for CouriersPlease, including a 26% reduction in make-good costs through strategic landlord negotiations while relocating to new fit for purpose premises aligned with achieving operational business efficiencies.
The Power of Strategic Partnerships
The greatest benefit is having a partner who can get us out of a bind or identify levers to negotiate better outcomes.
For CouriersPlease, having a strategic partner like TMX across its 17 properties has been transformative.
TMX’s expertise proved invaluable during a recent issue with outgoings at a new facility.
“Six months into a new lease, TMX did a review of our budgets around the outgoings. It was a massive improvement.” says Senthu.
With TMX’s help, they negotiated a favourable resolution, saving significantly and decreasing outgoings by over $600,000 over the financial year.
Harnessing Technology for Precision
Traditional condition reports often lack detail, but TMX’s Matterport, a 3D digital scan tool, offers an accurate, cloud-stored property record to track and monitor the condition of a property.
“Throughout the Lease term and at Lease expiry in say 10 years, Occupiers have access to this detailed physical property scan.
With or without a dedicated property team, source of truth is critical, providing clarity on fair wear and tear versus repair obligations and make good responsibilities. This is a common occupier problem where costs compound over the Lease term” Armstrong explains.
This technology ensures occupiers maintain control in negotiations over capital replacements or repairs, particularly for brownfield or refurbished properties.
Aligning Property and Business Goals
At its core, successful property management is about alignment. A property strategy must dovetail with an organisation’s broader business objectives.
“You must have a strong business strategy—short, medium, and long term—linking it to your property strategy is really important,” Ms Armstrong said.
Without this alignment, occupiers risk operating in spaces that no longer suit their evolving needs.
Transforming Property Management into a Strategic Asset
Early planning, technology and strategic partnerships transform property management into a proactive process, avoiding costly mistakes and keeping businesses agile and competitive.
Unlock your property portfolio’s potential with expert guidance from TMX. Together, we create strategies that not only support but amplify your business goals.
Find out more about TMX's Industrial Property Services here.
This article was originally published by the Property Council of Australia on December 11, 2024.
