In today’s ever-changing world of design-led thinking, we expect to be able to reinvent products, services, technology and even ourselves in a heartbeat. However, when it comes to bricks and mortar, not so much.

Purely due to the innate nature of property – its fixed construct – and the rising costs to update or change it, the reinvention of existing buildings is viewed as arduous, expensive and slow. Right? Not in our view.

We disagree to the point that we think that if you, or the property manager looking after your property isn’t constantly evolving it, you’re not getting the most value or productivity out of that space. Rather you’re losing time and money.

There are a number of trends impacting on the demands tenants have on their workspaces. As millennials become a greater part of the workforce, advances in e-commerce progress, the drive for greater sustainable performance of buildings grows, and labour market interventions such as more provision for flexible working increases. The spaces in which we work need to not only modernise and reinvent, but expand or shrink on a regular basis.

Colliers International’s December report,Predictions for 2019, portrays that the need to continually improve and update work environments is only going to increase.

It says: “The flexible work space sector will forge ahead in 2019, while it will be a challenging year for many retailers as online and offline competition mounts. So expect to see owners of retail properties transitioning them into more experiential, entertainment, and food and beverage offers.”

So how do you ensure the property you own is fit for purpose, remains operationally flexible and returns maximum value?

1 Know Your Customers

While the concept is not rocket science, the practice is easier said than done. Understanding and staying connected to your customers – those who use the space, your tenants, is key. How well do you know them, their businesses and their needs in the space they operate from?

At PMG, we pride ourselves on our relationships with our tenants which we see as much more than just a landlord/tenant relationship. Rather it’s a partnership.

And that means we expect to know well in advance if a tenant may want to expand, contract or use the space differently, so we have time to work with them to find a better solution and retain them.

2 Understand Your Product

Know the potential value of the space and its capability. This is where having experience and expertise in the commercial property industry is worth its weight in gold.

A good example of this is the ongoing repositioning of an eight-level office building in Newmarket, Auckland which PMG owns. Over several years, we have worked through it progressively improving the physical environment. This has meant creating smaller tenancies and reconfiguring and modernising some floors.

We have maximised occupancy and value by ensuring rents have been brought up to market value. Now we are adding further incremental value through initiatives like digital billboards on the building exterior, improving common areas and adding additional amenities. It’s all about the constant evolution of the building.

The result has been an uplift of 28%, or 12.6% per annum, in the property’s value since we acquired it in December 2016.

3 Be Proactive

With strong human trends now dictating different requirements of property, each commercial property sector needs to adapt. The key to the successful management of those assets is constant proactivity.

For the office sector, it’s about preempting and being flexible and receptive to how a tenant might want to use a space now, next year and in years to come.

In retail, it’s about asking customers what they want when they go shopping and focusing on their experience of the retail environment. An example is one of PMG’s mixed-use properties in Ellerslie, Auckland where a food alley feel has been developed. This has bred new life, foot traffic, tenants and value into the property.

The industrial sector might be the darling of commercial property right now, but it still needs proactive thought. Technology and advances in logistics and automation require industrial warehouses to do more than ever.

For example, with a PMG-owned industrial property in Wiri, Auckland we worked with an existing tenant and built an extension to the existing warehouse facility to meet the needs of their expanding business. The tenant has now signed up to a new 10-year lease, at a much increased rent, which adds significant value to the property.