Landlords must unlock value in properties
Office tenants need a good deal and nurturing Material Girl loses bid to stop auction
WITH owners of commercial property still facing headwinds, landlords should not forget that tenants need nurturing and a “good deal” to stay loyal, says Norman Raad, chief executive of Broll Auctions & Sales.
Raad says there is a downward pressure on rentals, making new developments seem unfeasible and too expensive.
“This will correct over time, but not in a struggling economy. In tough times, there is nothing to keep tenants in offices besides a good deal, so it would be prudent for landlords to rather make rentals affordable than lose tenants, especially as replacing a tenant comes at an increased tenant installation cost contribution.”
He says the industrial property landscape is changing dramatically, with older buildings becoming almost totally obsolete as the market moves towards “big boxes”.
Consequently, the investor or landlord must be innovative to unlock the value in their properties as trends change and the market faces increasing challenges.
“Today’s buyer also invariably faces challenges when trying to raise finance through an institution as cash flow challenges are the norm in a tough economy.
“There is likely to be a massive move to selling vacant and non-core assets, with the market experiencing serious activity going forward as it starts to correct itself after a history of overvalued properties. Realism is fast setting in regarding the valuing of assets.
“Obviously, this depends on the area and position of the property.
“For example, Cape Town still enjoys more demand than supply, though there seems to be some softening in the residential development sector.” – Auctions Writer POP ICON Madonna’s attempt to block the auction of a handful of her items – including a breakup-up letter from former secret lover, the late rapper Tupac Shakur – has been turned down by a New York court.
Among the lots the 59-year-old Material Girl singer unsuccessfully tried to stop from the auction block were a lock of her hair, underwear and several personal photos.
On Monday, New York judge Gerald Lebovits ruled that auction house Gotta Have Rock and Roll had the right to sell Madonna’s items.
Madonna successfully filed a temporary restraining order last July, when the auction was first announced.
She claimed that she was not aware items destined for auction were missing from her personal collection.
She blamed former friend and art consultant Darlene Lutz, who consigned the auction.
Madonna said Lutz “betrayed my trust in an outrageous effort to obtain my possessions without my knowledge or consent”.
But the court has now ruled that Lutz’s disputes with Madonna were settled by a legal agreement between the two in 2004.
The judge also questioned why Madonna was pursuing Lutz and not the singer’s assistants who, according to Madonna, had handed the 22 items to the art dealer.
Judd Grossman, a lawyer for Lutz, called the court decision “a total win”.
Co-owners of Gotta Have Rock and Roll, Ed Kosinski and Pete Siegel, said they would go ahead with the auction of the Madonna merchandise in July, including the letter from Shakur.
Shakur, who was a successful American rapper in the 1990s, was shot dead in a drive-by shooting in Las Vegas in September 1996 in a gangster-related incident.
He was 25 at the time.
In the now highly-publicised letter to Madonna, the hip-hop artist had apparently told her it would damage his reputation if his secret affair with a white woman became public.
It is now very public.
Bidding for the letter expected to be brisk. is APRIL 29 2018