Author Archives: PineProperty

9 COVID-reopening strategies for Northern Beaches businesses

After a difficult few month of forced closures or drastically restricted trading, Northern Beaches restaurants, pubs, hairdressers, gyms and other businesses are now open to fully vaccinated people.

Some restrictions remain, with patron density limits and mandatory face masks for staff and customers in all indoor settings. In outdoor settings masks are only required to be worn by staff.

Patron QR code check-ins and proof of vaccination is required, however the Service NSW “vaccine passport” app designed to help businesses manage this is not yet operational, meaning Medicare vaccine certificates will need to be used for checking vaccination status.

Further loosening of restrictions for the vaccinated is expected when 80 per cent of over 16-year-old NSW residents are vaccinated, while from 1 December the unvaccinated will see more freedoms and office-based businesses will no longer be required to let staff work from home.

Regardless, some rules will remain, such as mask-wearing and a maximum density of one person per two square metres. Rules that have seen other countries like Italy successful exit lockdowns without case numbers surging again.

Very strong Christmas spending forecasted

The good news is that the leadup to Christmas and the holiday period I, on the basis that vaccine rates increase to allow more shopper mobility, shows every indication that we will see a much stronger year for retailers. Extended lockdowns, travel restrictions and low interest rates have created a perfect storm of cashed up and excited consumers ready to spend, according to CEO of the Retail Doctor Group, and Manly resident, Brian Walker.

To help businesses capitalise on the predicted surge of consumer spending, Brian offered the following nine strategies.

Stock up: With the expected influx of spending, ensuring you have enough stock on hand, or available through robust supply chains (which are already strained due to COVID) will help capitalise on strong demand, according to Brian.

“Be prepared to invest in the right products for your customers. If you are strong in a certain category and have proven history there, all conditions are there for a very robust Christmas and New Year sales period,” he said.

Invest in your staff: Along with stock shortages, staffing shortages will likely be the greatest challenge for retailers over Christmas, according to Brian. Existing staff will also be under more pressure, so he encourages businesses to invest in training and support mechanisms and to beware of employee fatigue.

Support local residents (and businesses): With residents restricted from leaving their LGA, COVID saw a rise in community and a return of the local high street.

“Our Retail Doctor Group studies have shown consumer relationships with their local community and retailer of choice is now stronger than ever,” Brian said, adding that retailers should employ sales and marketing strategies to continue strengthening that local relationships.

Prepare for an influx of local tourists: People can now leave their local LGAs, but cannot travel interstate of overseas, meaning destination regions like Manly and the Northern Beaches will see an influx of visitors, Brian said.

“It has all the classic elements of being extremely busy, so retailers should also develop sales and marketing strategies that are tailored to those expected visitors.”

Consider a facelift: People are fatigued after months of lockdowns and so are going to look for something fresh and interesting, according to Brian.

“Dress up the window, give your shop a coat of paint, freshen up your menu or drinks list. Give people something new and exciting,” he said.

Don’t neglect online: While lockdowns may be ending, it does not mean the end of online, which has grown to an average of 15 per cent of total spend from an average of 9 per cent pre-COVID, Brian said.

Ensure your website, online ordering, home delivery and other digital business tools are not neglected as people return to premises.

Be proudly COVID-safe: Customers are expected to shy away from businesses that are not clearly COVID compliant, so ensure your processes for managing check ins, masks, social distancing, hand sanitiser and other strategies are polished, and don’t be afraid to promote it.

Marketing: Marketing strategies that welcome customers back with announcements around the strategies outlined in this article, and promote your COVID-safe compliance, will serve you well.

Brian also encourages all businesses to have their own CRM database, to manage email, social media and other communication tools to customers. Focus on lifetime customer value as distinct from that one transaction

Consider your insurance: Businesses have a duty of care to provide a safe environment for their customers and their staff, which extends to COVID protection measures. Insurances like Workers Compensation and Public Liability Insurance are designed to offer some protection, however they have been largely untested with COVID claims, so it is prudent to check with your insurer or broker

What is the future of retail?

Asked about his vision for 2022 and beyond, Brian said that he expects consumers to continue returning to good retail businesses, but for online and omni-channel to also remain a strong part of the buyer journey.

“Physical retail is a very important part of consumers lifestyles. Retail is a human experience. People want to see, touch, smell, look at and talk to people and products. They also enjoy the habitual behaviour that shopping brings. It is part of our DNA and the social fabric of our communities.”

What other countries tell us about how/when businesses will re-open?

In Europe, the UK and the US, regions previously among the hardest-hit by COVID-19, life is surging back to normal.

It’s a new normal, certainly, but people are shopping, dining out, visiting cinemas and theatres, travelling. Cities are opening up and showing the parts of the world still lurching between lockdowns what a roadmap out can look like.

It’s no secret that it is the high vaccination rates that are making the return to normalcy possible: in the European Union, 70 per cent of the adult population has been fully vaccinated, while in the UK that number is 79 per cent and in the US, 64 per cent.

This has given governments the confidence to lift restrictions, and residents the confidence to go out and enjoy their new freedoms. In Italy, for example – once the European epicentre of the pandemic and now boasting a 5 per centvaccination rate – life is (COVID) normal.

Indoor restaurants and bars, sporting events, museums, theaters, swimming pools, gyms, spas, festivals, fairs and amusement parks are open to those who have received at least one vaccine dose, recovered from COVID-19 or tested negative – a status evidenced by their Green Pass.

The vaccine passport

The Green Pass, Italy’s version of a vaccine passport, is a key element of the new normal. In many countries in Europe, as well as in New York City, these are required to gain access to indoor dining, gyms, performances and some stores.

These passports mean people feel confident coming back into these venues, bolstered by other measures including (depending on the country) indoor mask mandates, square-metre rules and check in processes.

Offices in Europe, the UK and the US are also filling up again, with some caveats. Increasing numbers of companies require returning office staff to be vaccinated and some encourage mask wearing indoors.

Office spaces look different too, with plastic partitions between desks becoming popular, two-metre distances between desks and bottles of hand sanitiser alongside the tea and coffee canisters.

While remote working will remain a possibility for a percentage of organisations, hybrid or full-time office hours are likely to be the reality worldwide, especially for smaller firms, which studies show are most likely to return to the office. As a result, demand for office spaces remains much stronger than was anticipated during the early days of the pandemic.

Closer to home

Here in Australia, where much of the country is swinging in and out of lockdowns, we find ourselves victims of our own early success with the pandemic.

Complacency and a government who insisted the vaccine was “not a race” have led to low vaccine uptake, and only 37 per cent of our population over the age of 16 is fully vaccinated.

However, in NSW – where much of the population has been under lockdown since June 23 – the vaccine rollout has picked up speed.

More than 7 million doses had been administered as of September 2, giving us 71 per cent of the population with at least one dose and 39 per cent with both. With steadily rising numbers of vaccinations, we’re looking to Europe to see what the future holds.

Opening Up:

When NSW hits a fully vaccinated rate of 70 per cent, which is expected to happen by mid-October, we can expect the easing of many restrictions and the reopening of businesses.

Eighty per cent, which is likely by late October, is touted as the target at which things will begin to return to a truer sense of normality so by November we can expect to be living freely.

Restaurants will open for eat-in with an emphasis on alfresco dining, sporting events will allow spectators, and hair and beauty salons will get back to work, to the relief of everyone with lockdown haircuts.

Local boutiques, weekend markets, pubs, cafes and makers spaces will also be able to welcome their customers and communities once again.

Our new normal looks different to our pre-COVID world, however, based on the successful reopening of countries with strong vaccine rollouts, it’s something we can all look forward to.

How to help staff happily navigate workplace change

As businesses navigate their way through the second year of the coronavirus pandemic, the uncertainty for business owners and their staff continues.

The challenge is greatest in industries most affected by lockdowns including tourism, hospitality, retail, events and education. However, all staff in nearly all businesses – from the CEO to receptionist – have faced significant change and the challenges that come with it.

From those worried about losing their business or job, or catching COVID-19, to those suffering from isolation or loneliness due to working from home and being disconnected from their teams, the pandemic has touched everyone and caused significant mental health challenges for many.

Part of this challenge is the rapid rate of change that has been required. The pandemic has seen businesses implement changes that would usually take months or years, in only a few days or weeks.

While change in business is unavoidable, there are some strategies that business leaders can use to help workers better navigate and embrace that change.

Even better, these strategies often cross over with those used to drive a positive workplace culture and a mentally healthy workplace.

Change Management and Mental Health Initiatives:

Provide an open, transparent communication forum: Strong communication is critical during uncertain times. It encourages employees to share concerns and provides management an opportunity to gauge sentiment and quickly address any issues.

Encourage Feedback: By encouraging staff to provide feedback on change, they will feel better supported, are more likely to buy into the change, and may improve processes. Encourage feedback in both one-on-one meetings and the open communication forum.

Recognise and celebrate every win: Recognition has long been found to be a better motivator of staff than money. So, create a culture that celebrates success and embraces the power of praise and recognition among teams. Consider also how this recognition might be shown publicly to those working in remote team environments.

Implement flexible working arrangements: While many have struggled working from home, others have loved the flexibility and hours saved by not commuting. Embrace both models as Australian tech company Atlassian has done with their “Team Anywhere” policy.

Consider Workplace Design: Foster a positive workplace culture with an environment that enables staff to come together – collaborate, exchange ideas, share knowledge and belong to a team. Employees should feel that their workplace environment strengthens team bonds, both physically and using online tools.

Adopt worker wellbeing initiatives: Helping your staff stay healthy and active helps reduce stress. Some examples include ride-to-work days, walking meetings, lunchtime surf breaks, Zoom yoga classes, ergonomic work stations, healthy snacks or simply encouraging workers to take 10 minutes outside in the fresh air and sunshine.

Offer learning and development opportunities: By investing in upskilling your staff you are sending a strong message that they are valuable to the business, while also empowering them to adapt to change. The result is staff who are more productive, more motivated and more likely to stay in the business longer.

Offer external support: Offer your staff access to external, independent information and resources that help them navigate uncertainty and change.

Lead by example: Workplace wellness begins at the top and employees are unlikely to adopt change or prioritise their wellbeing and mental health if their leader is not doing the same.

If you need someone talk to, call:

Lifeline on 13 11 14
MensLine Australia on 1300 789 978
Beyond Blue on 1300 22 46 36
Headspace on 1800 650 890

Commercial Property Appraisals and Valuations: What’s The Difference?

A commercial property appraisal or valuation provides insight into the projected market value of a property and can be important if you are looking to buy, sell or lease.

Understanding the differences between a commercial property appraisal and a valuation will enable you to determine which is best suited to your requirements.

In broad terms, if you require official legal documentation assessing the value of your commercial property you will need a valuation. For a sound understanding of the property’s market value, an appraisal is sufficient, according to Pine Property’s Patrick Kelleher.

Commercial Property Appraisals

A commercial property appraisal is an indication of current value based on an asset’s physical attributes and condition, and comparative market analysis. An appraisal is an informed opinion and is not legally binding.

Any licensed real estate agent can provide a property appraisal, however they should have a strong understanding of commercial property in the local area as the relevant attributes impacting the valuation can vary significantly.

“It is best to choose an agent who is experienced in your area to provide a relevant appraisal. For commercial properties, there are a lot more factors that influence price compared to residential,” says Patrick.

For commercial, retail and industrial properties, appraisals consider a range of physical factors including:

Size (square meterage)
Location and position
Foot traffic
Amenities including bathrooms, showers or kitchenettes
Provisions such as Food and Beverage approval, grease trap, extraction and power
Building attributes including lifts, car parking, or shared amenities
Tenancy attributes such as windows, balconies, and lighting
Natural light
Area demographics
Existing fit-out
Signage opportunities
Width of shopfront

Once a real estate agent has evaluated the features and condition of a property, they substantiate their value estimate with a comparative analysis using current and recent sales and leasing data.

“Unlike residential property where sales evidence is readily available, a lot of commercial property data isn’t published so it is important to choose a specialised local agent with access to that information,” says Patrick.

Commercial Property Valuations

A commercial property valuation is a formal value assessment conducted by a Certified Practicing Valuer. The Valuer provides a legally-binding, comprehensive report detailing the factors influencing a property’s market value at a given point in time.

Commercial property valuations are often required by banks and lenders to grant pre-approval for finance. They are also frequently used in the calculation of capital gains tax, to settle family or partnership disputes, and as formal evidence in other legal proceedings.

There are three main methods of commercial property valuation:

The direct comparison method, where market value is determined based on the recent sales or leasing of other similar properties in the area.
The summation method, which calculates an overall value based on the combination of the land value (location, typography, surrounding infrastructure) and the value of any improvements to the land (building, car park, possible renovations).
The capitalisation method, usually reserved for investment properties, calculates market value through potential rental income.

“Generally speaking valuations will be similar as they are all determined based on the same evidence, however depending on the intent it may be in the best interest of the client to seek more than one valuation,” says Patrick.

Which do you need?

If you simply want an assessment of market value as it stands and do not require a legally-binding document, a commercial property valuation may not be necessary.

“An appraisal can be just as good as a valuation, especially if you are liaising with an agent who is a specialist in their field,” says Patrick.

Backed by expert knowledge and an intricate understanding of local markets, Pine Property provides detailed appraisals for commercial, retail and industrial properties for a fee. Enquire now to learn more.

Buying commercial property through your SMSF and renting it to your business

Legislation allows business owners to purchase a retail, commercial or industrial property through their SMSF and rent that property back to their business.

Those who are currently renting an office, warehouse, retail storefront or other business premise, or who have an existing commercial property under company title, might benefit from investigating
this investment option.

Key Benefits of Buying a Commercial Property through your SMSF:

Your business is paying rent to your future self and not a landlord.
The property loan ‘leverages’ your superannuation fund.
Investment earnings (rent) is taxed at 15 per cent as opposed to your marginal tax rate if the
asset was held outside of super.
Capital Gains Tax (CGT) on the commercial property is only 10 per cent if it is held for longer
than 12 months, or 15 per cent if held for less than 12 months.
Once fund members enter ‘pension phase’ and/or meet a condition of release, the asset can
be sold down without capital gains tax.

The information in this article does not apply to residential property, which you cannot lease back to you or your business to live in, even if you also run your business from home.

The Australian Tax Office (ATO) states that super funds, and the tax concessions they receive, should not provide financial benefit to you or anyone else – other than increasing the return to the fund. However, there are occasional exemptions such as a primary production business that also has a house on it.

Purchasing a commercial property through your SMSF and renting it to your business is allowed as it complies with the ATO’s investing at arm’s length rule stating that any investments made by your
SMSF must be made at a commercial arm’s length basis.

And according to Peter O’Malley, Director of Manly-based financial advisors Future Wealth Group,
this applies regardless of the business structure.

“Companies, sole traders, partnerships, and other business structures can take up a lease agreement on the SMSF business real property as long as they meet the other criteria,” he said.

Part of that criteria requires that you satisfy several superannuation and tax rules, including but not
limited to:

The property must also not be acquired from, lived in, or rented by a fund member or any
fund member’s related parties.
It must be classified as business real property which “generally means land and buildings
used wholly and exclusively in a business”.
The property must be leased to your business at the market rate – no discounts.
It must be a single acquirable asset. If there are multiple titles, you will require a bare trust
(see below) for each title.
Major renovations to the property are not permitted until the loan is paid off. Any
improvements must be paid for with SMSF funds rather than borrowed money.

Can you sublet part of the property to other businesses?

It is possible to sublet part of the commercial property to other businesses, for example renting out
desks, however there are some caveats, according to Peter.

“Any activities conducted in an SMSF need to firstly meet the ‘Sole Purpose Test’ for it to maintain
its compliant status,” Peter said.

The Sole Purpose Test is to ensure that regulated superannuation funds are maintained for the core
purpose of providing benefits to fund members upon their retirement, or to their dependants on the
event of their death.

If the trust deed allows the Business Real Property to sublet under a separate lease agreement, it
must be made at commercial terms with a lease in place at market rates, Peter said, adding that
most trust deeds are templated to accommodate this.

Other considerations:

Not all lenders will offer commercial property SMSF loans, and those who do will charge
higher interest rates and require a personal guarantee. Shop around for the most attractive
loan and conditions or engage a broker who has proven commercial SMSF experience, such
as Peter from Future Wealth Group.
Lender loan-to-value (LTV) ratios are more conservative, and you will require a deposit of at
least 30 per cent of the purchase price.
There are numerous traps for young players that can leave you with large stamp duty fees if
the purchase is not structured correctly. Engage a lawyer, accountant and financial advisor
with specific and demonstrable experience in purchasing and leasing commercial properties
though SMSFs.

Administration Costs:

Peter said that accountant fees might range from $1800 to $4000 for SMSF establishment while
ongoing accounting fees might range from $2000 to $4000 per year depending on complexity. “Holding [bare] trust establishment can also vary from $1000 to $2,500 and conveyancing costs will
be around $2000 to $3000,” he added.

“Initial fees for financial advice and investment strategy can start from $2500, while ongoing costs
vary from $4000 – $6000 per year depending on complexity and funds under management.”

And of course, any other costs traditionally associated with managing an investment property will
also apply such as levies, strata management and property management.

LBRAs and Bare Trusts

The legislation requires that SMSFs borrow funds for commercial property assets in a limited recourse borrowing arrangement (LBRA) which serves to protect your other fund assets in the event of a default on the commercial property loan. That is why lenders require a personal guarantee as
security.

The commercial property asset will be owned by a ‘bare trust’, a separate entity that cannot be the same as the SMSF trustee.

Ensure you obtain legal and financial advice when setting up a bare trust for an LBRA as rules vary between states and territories and getting it wrong can be very costly.

The advice in this article is general in nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

The rise, fall and resurrection of QR codes

Quick Response (QR) codes were once considered a failed marketing fad but have been instrumental in managing COVID-19 case and contact tracing and the successful reopening of businesses.

So why did they struggle to secure a mainstream foothold for so long? Have QR codes always been an effective solution patiently waiting for a problem? And what opportunity do they hold for the future of retail and hospitality businesses?

The Rise

Quick Response (QR) codes were first introduced by Japanese firm Denso Wave in 1994 as a faster and more functional alternative to barcodes.

While the 2D codes were initially adopted solely by the automotive industry for inventory control purposes, in 2002 they were pushed into the mainstream in Japan by the marketing of smartphones with QR reading capabilities.

Denso Wave’s decision to make the code specifications publically available meant anyone could use QR codes freely. This led to some global success in the early 2010s as large companies began to explore their use in marketing. In fact, US start-up JumpStart reported a 1200% increase in QR scans between July and December 2010.

The technology had undeniable potential but ultimately failed to take off. So what happened?

The Fall

QR codes were a victim of their time. In theory, they offered customers on-demand access to information or experiences with the simple scan of a code. More often than not, the reality was a negative user experience from end to end.

It wasn’t until 2017 that Apple’s iOS update allowed QR codes to be scanned using the phone’s camera. Androids soon followed suit. Before that, scanning a QR code had required a dedicated app, which proved a significant roadblock to their success.

Consumers accustomed to instant gratification had little incentive to download a new app just to be redirected to an existing URL that could be easily accessed through Google.

Those who did take the time to download apps and scan codes were often met with disappointing results. Websites that had not been optimised for mobile devices or unclear information left customers confused or disinterested.

All this effectively defeated the value and accessibility of QR codes and they were pushed aside as a failed marketing fad. Until now.

The Resurrection

If you’ve left your house in the past six months, you’ve no doubt noticed that QR codes are back. 2020 has seen the resurgence of QR codes, with consumers forced to embrace them out of necessity rather than choice.

Governments have implemented QR codes as a method of COVID-19 contact tracing, requiring individuals to check-in to each venue they visit, and as businesses reopen into a new no-touch normal, they are shifting towards completely contactless customer experiences.

You can now visit a restaurant and view the menu, order, and pay using just a QR code. You can scan a movie poster and purchase a ticket to a screening. In America you can even scan a code and pour yourself a Coca-Cola from a completely contactless vending machine.

Maybe the introduction of QR codes in 1994 was a solution to a problem we wouldn’t know we would have for another 26 years.

QR code opportunity for businesses

As QR codes become part of our daily lives, retail and hospitality businesses have a new opportunity to connect with customers.

Businesses who successfully incorporate QR codes into their branding experience will direct customers to experiences and information that adds value or makes their life easier in some way.

And with advances in technology and the issue of customer adoption overcome, QR codes may be here to stay this time.

2020 Manly Christmas Gift Guide

Christmas is coming!

We think it’s really important to support small business all year round, but this COVID Christmas you could be making a huge difference to local businesses and by shopping from them; you’ll be putting a smile on their face too.

This guide is full of opportunities to support shopping small this season and has a few of our personal favourites too!

Experiences:

Pinot and Picasso
Tap into your creative side with a 3 hour paint and sip experience. Pinot & Picasso runs classes catering for all levels of ability. Group and private lessons available for starting at $59.
P: 1300 414 329
A: 121 Pittwater Road, Manly NSW 2095

SUPBALL
Stand up paddle boarding mixed with a game of ball. Join a game, Gift a tour of the Brookvale based distillery specialising in gin, vodka and whisky. Your giftee will learn about craft distillation and artisan spirits. $25 per person including tasting flight.
P: +612 9976 5057
A: Manly Wharf, E Esplanade Manly NSW 2095

Flow mOcean Yoga
Are you a master at yoga? Well this should test your core and balance! Try a stand up paddle board yoga class in the harbour. Drop in classes start from $55 or perfect your practice buy purchasing a 10 pass.
P: +612 9976 5057
A: Manly Wharf, E Esplanade Manly NSW 2095

Manly Surf n Slide – Unlimited Sliding Pass:
For the kids, a day at the waterslides is one of pure joy. And the best thing is that you can sit harbourside in the sun while they wear themselves out.
P: +612 9949 6645
A: Commonwealth Parade, Manly NSW 2095

Rimba Sweat
What do you get when you combine the century old practice of the sauna with the modern science of infrared technology? An infrared sauna studio. An experience for the body and the mind. Sessions start from $45
P: +612 8959 0672
A: 212 Pittwater Road, Manly NSW 2095

Bohemia Blow Dry Bar
Look fabulous during the summer season at one of your many social do’s with a specialized blow dry or up do. Bohemia offers a standard style dry right through to the deluxe experience. There are lots of lovely add ons but a short hair dry starts at $35
P: 0450 639 880
A: 50 Pittwater Road, Manly NSW 2095

Sculpt Barre Fitness
A female only boutique fitness studio focusing on Pilates, Flow & stretch work outs. Give that female in your life some much needed time to reboot her body and mind. 5 Class pack is $145
P: 0497 081 147
A: 15a Whistler Street, Manly NSW 2095

Unwrap Me:
Some of us just like to rip open and unwrap that gift from underneath the tree on Christmas morning, so we have shortlisted a great bunch of gift ideas below.

Budgy Smuggler
A great Christmas gift for those who like to make a statement. Budgy Smuggler is one of Manly’s most iconic brands and quickly becoming an Australian legend.
P: +61 452 428 349
A: 1A/22 Darley Road Manly

TRAM
While travel has been placed on hold this year, it doesn’t mean we can’t indulge in it via gorgeous prints and artwork. We are Tram have prints, keyrings, coasters and journals for purchase of skylines or ariel maps of places near and far.
A: 40 A Sydney Road, Manly NSW 2095

Keel Surf & Supply
Keel offers a unique surf retail experience with their beautifully curated surf items and apparel. Organic t-shirts, books, artwork fins, ceramics and of course surfboards.
P: 0401 319 955
A: Shop 7C Lawrence Street, Freshwater NSW 2096

Sophie T Art
Famous for her colourful nudes and bold hearts why not treat someone you love to a Sophie T original painting.
A: 29 Sydney Road Manly NSW 2095

Manly Longboard Co
An icon to Manly’s surf heritage, there is a great range of tees, tanks, tops, caps, towels, accessories and stickers for all of the family.
P: +61 9977 0093
A: 42 Sydney Road Manly

Honey Bee Homewares
This is the ‘French Quarter’ in Fairlight. Here you will have no trouble finding a suitable gift for someone you love, from the gorgeous array of French homewares, fashion and décor.
P: +612 9948 9908
A: 178 Sydney Road, Fairlight NSW 2094

Emporio Home & Flowers
Give someone the gift that keeps on giving from a great range of orchards and plants from a long-standing Manly local.
P: +612 9977 1676
A: 189 Pittwater Road, Manly NSW 2095

Dreamtime Interiors
Showcasing a wonderful range of traditional and contemporary Aboriginal artwork, crafts and home interiors. You will certainly find a little something for yourself and someone you love
P: +612 9977 7977
A: 36 The Corso, Manly NSW 2095

23 Albert
A luxury boutique of all things high fashion. Shop the best of everything and you will certainly look the best at your summer social gathering.
P: +61 9905 2888
A: Shop 4, 13 Whistler Street, Manly NSW 2095

BLAEK
With their key principal being to sell only organic, sustainable and ethically made items you will not only be making someone happy on Christmas day but you will shopping more consciously too. They have a range of t shirts, dresses, shoes, bags and candles.
P: +612 8591 7363
A: 210 Pittwater Rd, Manly NSW 2095

Is your commercial real estate agent willing to collaborate?

In order to achieve a favourable outcome, your commercial real estate agent should be willing to collaborate with other agencies and specialist consultants.

This collaboration offers clients access to a range of complementary services, the knowledge and networks of expert professionals, and positions them with the best possible chance for a successful and streamlined deal.

Knowledge and network

While not all deals require collaboration, it is often in a client’s best interest to have access to a range of specialists who can help streamline the deal process, says Pine Property’s Patrick Kelleher.

“Often a deal is much more complicated than just matching a landlord with a tenant. We collaborate with a range of parties on a daily basis.”

“When challenges arise, it is helpful to be able to collaborate with and leverage the expertise of specialist consultants in order to get a deal across the line. It’s all about that knowledge and network.”

Landlords or tenants often benefit from their commercial real estate agent being willing to collaborate with other agents and professional consultants including architects, solicitors, financial advisors, tax accountants, brand designers, private certifiers, surveyors, buyers agents, and more.

A holistic approach increases the likelihood of a successful and streamlined deal.

Inter-agency collaboration

Some deals may benefit from the collaboration of multiple real estate agencies. Traditionally, both residential and commercial agents have been reluctant to work with competing agencies as they do not want to appear unable to manage the deal on their own.

However, in some instances matching the local expertise and network of a boutique agency with the multi-national reach of an international agency may achieve the best result for all parties, particularly in the sale or lease of high value assets.

Recently Pine Property collaborated with multi-national agency, Colliers, in the collective sale of six units as a potential residential development site on Manly’s beachfront.

Through Pine Property’s local knowledge and network and Colliers’ international reach, 92 North Steyne was well positioned for a mutually beneficial outcome for the client.

“If it is in the best interest of the client to collaborate with another agency then we will do it. In this instance partnering with Colliers made the most sense in order to achieve the best possible outcome”, Patrick says.

Other specialist collaborations:

One of the benefits of being a boutique agency is the ability to collaborate with a range of local third party specialists for particular projects. Through Pine Property’s specialist local network, tenants and landlords can be introduced to complementary specialists who can streamline the deal process.

Whether you need an architect, solicitor, financial advisor, tax accountant, brand designer, private certifier, surveyor or buyers’ agent, Pine Property has connections to help you secure or sell a property.

Some examples of specialist advisors we collaborate with include:

Buyers’ agents: Pine Property has a strong network of specialist, local and international buyers’ agents with cashed-up clients ready to buy. We regularly work with these buyers’ agents to secure off-market sales for clients.

Lawyers: Both tenants and landlords benefit from having access to the specialist knowledge of a good local lawyer. By leveraging local expertise of the area, commercial property market, council controls and contacts, then clients – whether sellers, purchasers or tenants – can increase their chances of securing a positive outcome.

Town planners: Having a direct line to a town planner throughout the deal process can be hugely helpful for clients purchasing or leasing a commercial property. The guidance, advice and assistance of a town planner maximises the likelihood of council approval for any development or change of use.

How COVID is permanently changing retail

COVID has seen some retail businesses boom and devastated others. It has accelerated the trend online, changed tenancy mixes and highlighted the importance of brand narratives and regional strategies.

Home-service retailers have done well out of COVID-19. From homewares to renovations, people have been spending big, while fashion, tourism and service-based industries are hurting.

The reasons are obvious, according to Brian Walker, retail consulting expert and managing director of the Retail Doctor Group.

“We can’t travel, we can’t socialise and we are spending more time at home,” Brian said.

These same reasons have led to a boom in online retail, from an average of around 9 per cent of sales pre-Covid to an average of 14 per cent in October 2020.

Online research has also gone through the roof. We are researching 90 per cent of larger retail purchases online – from fashion items and fridges to computers and cars – up from around 70 per cent pre-Covid, according to Brian.

And 80 per cent of that research is being done on a phone.

“We spend an average of four hours a day on smartphones. That’s a large percentage cent of our waking hours.”

“We are more educated than ever and if we are not buying online, we are walking into stores more knowledgeable.”

How to attract customers in the new normal

“The days of products sitting on racks in boring retail stores are numbered,” Brian said.

“Unless people have a compelling reason to go to your shop they will buy online or from a competitor.”

“People go to physical retail that is interesting, educational or fun. Retail that is novel.”

“Retailers require a good online offer, matched with interesting stories in store,” he said, giving the example of Patagonia.

“Consumers want relationships with brands. They want trust, loyalty and security, and to belong to a tribe.”

COVID has also seen a rise of “community” that retailers must align with.

“The really clever retailers are the ones thinking about this strategy and investing in online, physical experience, training people and adapting their business model.”

Advising impacted retailers on how they can ride out the current challenging conditions, Brian encourages them to go back to basics.

“Treat every customer like gold. Make sure there is an offer for them to come back to and focus on the basics of relationship: training staff in sales and service, great looking shops, eye contact and a smile.”

The return of the high street

Brian forecasts that the rise of local, community retail brought on by Covid will see the return of the high street, however stresses the critical importance of managing this effectively.

“The dramatic decline in tourism numbers that retailers rely on in places like Manly is leading to more empty shops and a requirement for landlords to adjust their rental expectations.”

“Who can afford Manly’s current asking rents? National chains. Not local, individual, characteristic retailers,” Brian said,

“As a result, we are seeing asset managers rethinking their portfolios and working more actively with retailers and adjusting rents in many cases.”

However, there is the risk that without a cohesive regional tenancy mix strategy, high streets will fail to fulfil their potential, which ends up eroding the value of that strip for everyone.

A regional strategy and narrative are required

There is an ongoing opportunity to develop collegiate trategically with owner bodies, councils and Chambers of Commerce to create the thematic of an area expressed in community events, tenancy mixes, and so on according to Brian.

“What is the three-to-five-year retail strategy? Regions need to do more to inspire localism in their communities,” Brian said.

Speaking of Manly he asked: “What is the character and flavour of Manly’s retail? What outcomes do we want? What character do we want it to have? What makes it unique?”

“The challenge for Manly – and many communities – is that property ownership is fragmented, with different parties all wanting to achieve slightly different, and in some cases conflicting outcomes.”

“Ultimately the market decides but sometimes it needs guidance, and it may need boundaries.”

Wellbeing in the Workplace

As we navigate our way through the ‘new normal’ of COVID19 realities, the pandemic has created a wave of uncertainty in the workplace.

Will my business survive? Will I still have a job? Do I have to take a pay cut? How long will I work from home? Will we ever go back to what we knew as a normal workplace?

This can take a toll on an individual’s mental health. Now is not the time to lose sight of your human side or your company’s values.

Supporting the wellbeing of employees in the workplace has been on the rise for years but COVID has taken this to a new level. Employers know that organisations perform better when their staff are healthy, motivated and focused.

When employees feel recognised and supported, they have a higher wellbeing level and thus perform better. This benefits the bottom line. It’s a simple win/win.

Question: What does ‘wellbeing’ mean to you and your team?

There will be varied responses but, whatever the answer, make a point of creating a company culture that puts employees’ wellbeing and mental health on a pedestal.

Here are some of our suggestions on maintaining workplace wellbeing at the moment:

Provide transparent communication. Given there is so much uncertainty and the COVID crisis is constantly changing, it’s important for business leaders to provide staff with transparency and positive reassurance in real time. Strong communication is critical during uncertain times.
Encourage open communication. 1 to 1 meetings will encourage employees to share concerns about themselves, their colleagues and their families. It’s integral to ensure leaders are able to answer questions about the business and employee’s individual circumstances.
Praise and recognise. Encourage a culture where appreciation of day-to-day efforts are shared and celebrated. Always celebrate the wins – big and small.
Implement flexible schedules for employees. Providing more flexible working hours, virtual check-ins, a variety of spaces to work from and the right tech support will reduce stress for employees, especially when they are concerned for the wellbeing of those they care for.
Adopt health initiatives. Keeping your staff moving benefits physical health and helps reduce stress levels. Initiate ride to work days, walking meetings, lunch time surf breaks, zoom yoga classes, ergonomic workstations including stand up desks, healthy snack or meal supplies or simply taking 10 minutes to get outside for fresh air and some sunshine.
Offer external support. Sending regular reminders to staff with information and resources they can access is important. This may be financial advice or mental health support.

Most of all, as a leader or manager, be a good role model for self care strategies. Self care and wellness in the workplace starts at the top. Walk the walk. Employees are unlikely to prioritise their wellbeing and mental health if a leader is fostering a ‘burnout’ environment.

If you need someone talk to, call:

Lifeline on 13 11 14
MensLine Australia on 1300 789 978
Beyond Blue on 1300 22 46 36
Headspace on 1800 650 890

See also The Complete Guide to Investing in Commercial Property