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Latest news and updates from Expedio

Happy New Year, 2016

It is the time of year when we make plans for the year ahead, and also look back over the past year.

As we look back over 2015, we reflect on Expedio’s most successful year to date. There have obviously been challenges over the course of the year, and mostly those challenges will not abate in the future.
 
What have we learned over the past 12 months?

If it is on TradeMe, it’s too late. Almost all of the business we have done has been through agents who have known how to work the market. That’s actually commonsense, as that is what agents should be doing. But too often agents fall into the trap of ticking boxes on ridiculous forms someone else has dreamed up, instead of doing what they should be doing – using sales skills to seal deals.

Compliance costs have increased. The cost of ensuring every building is compliant with every rule and regulation is growing – and there does not seem to be an end in sight.

Tenant’s expectations have increased. We don’t have a problem with this. Providing a greater level of service to clients should be what every business does. However, there is often a disconnect between what tenants sign up for in their lease, and then what they expect. We believe that the industry generally needs to address this gap.

The market can stop and start on a whim. Once again during the Rugby World Cup, the market came to a standstill. It is worrying that an entire market can be brought to it’s knees by a few games of rugby. It concerns us as to what would happen if a truly major world event took place.

The gap in attitude between large and small tenants is increasing. In the past our rule of thumb was that it cost around the same to administer a $20k lease as a $200k lease.  We now know that it actually costs more to administer the $20k lease. Which means at some stage there needs to be a loading on small leases for the “hassle factor”.
 
So, what does 2016 hold for us?  As we plan for the next year, it will essentially be more of the same – building a portfolio of great buildings in South Auckland, along with adding value to properties which are underperforming for whatever reason.
 
Expedio is very dependent on Real Estate agents ( and companies) for the sale and leasing of our properties. Whilst we fully expect the 80/20 rule to apply, we are often dismayed at the lack of sales skills displayed, and the lack of professionalism.

In an effort to start to turn this around, as of 31 January 2016 all existing agency agreements will be cancelled. We will look for new agreements with agents who can offer agreements which offer something to us – the fee paying client – rather than just a legal document which tells us what we can and cannot do, and then how much we have to pay for the privilege.