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The Impacts of Commercial Lease Structures on Landlord and Tenant Leasing Behaviours and Experiences

Author/s: Dulani Halvitigala, Laurence Murphy, Deborah Levy

Date Published: 1/01/2011

Published in: Volume 17 - 2011 Issue 4 (pages 560 - 583)

Abstract

The commercial property market in New Zealand is characterized by two standard but distinct lease environments. In Auckland, the commercial core of the economy, net leases dominate, whereas in Wellington, the political capital, gross leases are dominant. These different lease environments have the potential to strongly influence the nature of landlord and tenant relationships in these markets. Using in-depth interviews with key industry personnel, this study examines the perceptions, behaviours, experiences and key issues confronting landlords and tenants under net and gross leases. The paper examines how different lease structures affect the behavioural and attitudinal characteristics of landlords and tenants including: landlord/tenant perceptions of a lease, the operation and maintenance procedures, landlord-tenant relationship, and ultimately, overall satisfaction.

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Keywords

Alternative Lease Structures - Landlord Tenant Behaviours - Landlord-Tenant Relationship - Property Management

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