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Buying and selling are just the beginning. The real value is built in the hold.
In this episode of The Commercial Property Investing Podcast Australia, Arjun Paliwal and Chris Huxter are joined once again by Allison from MMJ Real Estate to unpack why commercial asset management is one of the most overlooked but essential parts of the investment journey.
Drawing on decades of experience, Allison reveals how commercial property owners can avoid long vacancies, prevent legal and financial risks, and strengthen relationships with tenants to maximise long-term returns.
Whether you’re self-managing your first commercial asset or looking to optimise your growing portfolio, this episode is packed with practical strategies.
🔍 What is Asset Management in Commercial Property?
Buying and selling commercial real estate are transactional moments. But holding a property profitably is where true wealth is built. Asset management is the proactive, tactical process of:
- Optimising tenant relationships
- Avoiding long-term vacancies
- Maintaining property condition
- Managing legal, lease, and compliance risks
- Strategically planning capital expenditure
Allison makes it clear that when investors skip professional management, they risk tens of thousands in lost income, lease loopholes, and non-compliance liabilities.
😱 A Costly DIY Mistake: The $30K Outgoings Oversight
Allison shares a real-life case where an investor self-managed a property in Clayton, Melbourne. When a tenant left unexpectedly and poorly maintained the premises, the investor was left confused and exposed.
Allison was called in to:
- Recover missed rent from an invalid lease exit
- Negotiate a make-good settlement
- Identify years of unclaimed outgoings (worth $30K–$40K)
- Bring the property back to lease-ready condition
This story highlights the true cost of cutting corners on asset management.
🔧 Strategic Capital Expenditure Reduces Future Risk
One of the key advantages of professional management is planning ahead. Instead of reacting to frequent maintenance issues like air conditioning breakdowns, Allison’s team advises landlords when it makes financial sense to replace instead of repair.
This not only lowers long-term costs but also improves tenant satisfaction, lease renewal rates, and the asset’s leasing appeal.
💡 Essential Safety Measures & Legal Risks
Many DIY commercial landlords overlook essential safety measures (ESMs), which could leave them personally liable in the event of a fire or accident.
Allison emphasises that professional managers:
- Ensure ESMs are updated annually
- Maintain safety compliance logs
- Protect the landlord from liability
These are legal obligations that carry serious risks if missed.
🤝 Tenant Retention is Everything
In a low-vacancy commercial environment, keeping tenants happy is a strategic priority. Allison shares tips for improving tenant retention:
- Build strong relationships and maintain early communication
- Monitor tenant needs for space, comfort, or noise concerns
- Offer flexibility in tough times (for example, temporary rent relief)
- Pre-emptively renew leases to avoid costly gaps
📜 Options, Renewals, and Lease Clauses: Get Proactive
Landlords often celebrate 3x3x3 lease terms, thinking they are secure. But Allison explains that options always favour tenants, not owners.
By proactively engaging tenants early, she helps landlords:
- Lock in lease renewals on favourable terms
- Avoid market reviews that might lower rents
- Adjust clauses to reflect legislative changes
- Recover more costs through updated disclosure statements
This forward planning builds resilience into your property.
🏗️ Preventing Vacancy Ripples
Vacant commercial properties don’t just hurt owners financially. They can reduce the appeal of entire precincts, lower neighbouring property values, and send the wrong signals to prospective tenants.
Allison and the team show how tactical management, communication, and proactive lease structuring can minimise downtime and protect the asset’s long-term appeal.
💬 Final Thoughts: The Right Manager Builds Real Value
Commercial property is a long game, and smart asset management is the key to playing it well. From lease compliance and retention strategies to reducing downtime and future-proofing legal clauses, the difference between a hands-off landlord and a high-performing one is expert support.
👥 Ready to Maximise Your Commercial Property’s Potential?
🎧 Listen to the full episode now
📞 Book your free discovery call with InvestorKit’s commercial team to learn how we manage assets for long-term performance and peace of mind.