Essays on Sustainable Property Management Research Paper

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Task 1 Currently, our regional shopping centres are facing a number of problems due to the effects of the global financial crisis (GFC). The effect of GFC has compelled tenants to seek rental relief. One such tenant of our property has also contacted for seeking rental relief. A market analysis of GEC affected tenancies in commercial properties is crucial before taking a decision on the said tenant request to reduce rent (Bovis Lend Lease: Current News 1 July 2010). Tenant Strategies Analysis of tenant business and turnover to decide whether the tenant is affected by the GFC or not.

Check whether the tenant is a brand seller or a seasonal seller of goods or offering discount sales, as those in the business of selling branded products are getting customer rush while seasonal business and those offering discount sales are not facing the heat of GFC. If other landlords are reducing rent to a tenant in the same business line and the same region, only then tenants’ demand for rent relief should be considered to avoid mass reduction in rents. Verify the affect of GFC on a tenant whether it is a mere excuse or a reality. Arguments Research of the related market states that Australian tenants of shopping centres are asking for relief in rents and fees because their community partners in US and the UK are demanding rent reliefs to avoid closing their business.

If such reliefs are demanded by mass retailers, property owners like ours would land in financial trouble but the scenario of empty shopping centres would be very uncomfortable, as customers are not in a mood to spend. Managers of other such establishments have reduced rents to avoid the possibility of shoppers not extending their lease agreement.

Some landlords have reduced rents up to 30% for national brands only. Some landlords have provided incentives worth 18 months of rent. Counter-arguments General opinion is that consumers in Australia are not as affected by the GFC as in the US and the UK. That’s why tenancy incentives are low in Australia. Unlike in Britain and the US, in Australia, operating income is expected to rise by 3-4%. Property market experts’ opinion is that landlords have to check whether retailers of shopping centres are just pretending or are actually affected by GFC.

Another downgrading fact is that superstore chains in backward areas are not asking for lease extension (The Australian 19 March 2010). Another important factor is that Australian retail rents are among the highest in the world but Australia has survived the GFC and come out robust from its impact. Actual and potential ramifications of giving a rental discount to this tenant most probably would be that other tenants would make a beeline demanding rental discounts likewise this tenant.

Tenants of selected business can only be justified in demanding rentals like those offering discount sales and seasonal tenants. A judicious decision can be taken by conducting a business and turnover analysis of this particular tenant’s business before moving forward. TASK 2 Sustainability of property management in Australia’s retail sector, particularly shopping centres needs collaborative research efforts with the government as the major stakeholder. Traditional concepts of designing enclosed shopping centres need enlightenment on the intangible aspects of shopping centres’ design for creating environmentally sustainable shopping arcades. Shopping centres can take a number of sustainability initiatives.

They should install upgraded lighting controls to save electricity as full voltage is required only initially; afterwards it provides full light by consuming 30% less power. This initiative enhances sustainability by reducing the level of greenhouse gas emissions. Another is the water saving initiative, which in the Australian context is very crucial as there is severe shortage of water. By saving water, a precious natural resource, the purpose of ecological sustainability is served. There are many ways of saving energy like in car parking, energy consumption could be reduced by programming the settings to work on demand only or when carbon-monoxide levels are high.

By reducing carbon emissions, the cause of sustainability is served. For saving water, a pilot project “Going Waterless” can be initiated in shopping centres by using a soluble block in urinals, which reduces the need for regular flushing. Shopping centres’ tenants’ sustainability initiatives help in conserving energy by switching off all lighting equipment when not used. Tenants should reduce waste generation and create opportunity for recycling of all waste.

All office equipment should be purchased keeping in mind the sustainability criteria like using such material for fitting and renovation like low-VOC paints. Benefits, expected preliminary cost indications, payback periods and timeframes in the implementation of each initiative Lighting controls can save electricity up to 118,202 KWh without any repairing and maintenance cost as no changes in the existing light fittings are required other than the difference in the cost of fluorescent tubes. In a period of 12 months harmful gas emissions is reduced in a 16-month investment payback time frame by saving $3,316.

Combined ROI on water saving initiatives by investing $639,000 on metering and conservation is 75.9%. It would be a saving of $485,000 per annum. Annual total energy saving in car parking, as checked from smart metering data, would be $9,500 and reducing energy usage to 119,212 KWh besides reduction in CO2 emissions. By going waterless in flushing for a period of 12 months, water saving reaches to $12,450 or 37% of annual costs and reducing water consumption of 14.8 mega litres in a 7-month investment payback (Sustainability Report 2006).

References: Bovis Lend Lease, 2010. Current news 1 July 2010: research partnership aims to improve sustainability of Australia's retail sector. Available from: http: //www. bovislendlease. com/llweb/bll/main. nsf/all/news_20100701 [Accessed 28 July 2010]. Department of Environment and Climate Change NSW, 2006. Sustainability and property management. Available from: http: //www. environment. nsw. gov. au/resources/sustainbus/09129SPGSection3.pdf [Accessed 28 July 2010]. The Australian, 2010. Retailers seek big cuts from shopping centre landlords. The Australian, 19 March. Available from: http: //www. theaustralian. com. au/business/property/retailers-seek-big-cuts/story-e6frg9gx-1225689629252 [Accessed 28 July 2010]. The Australian, 2010. Outlets for sale as mall traders suffer amid economic doldrums. The Australian, 12 June. Available from: http: //www. theaustralian. com. au/business/outlets-for-sale-as-mall-traders-suffer-amid-economic-doldrums/story-e6frg8zx-1225878643057 [Accessed 28 July 2010]. The Australian, 2010.

Australian retail rents among the world's most expensive. The Australian, 22 June. Available from: http: //www. theaustralian. com. au/business/australian-retail-rents-among-the-worlds-most-expensive/story-e6frg8zx-1225869802703 [Accessed 28 July 2010].

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