Vacancy is one of the biggest threats to income stability in commercial portfolios. For Leteicha Wilson of Ray White Commercial, mitigating that risk is less about luck and more about discipline, communication, and forward planning.
Leteicha, who oversees commercial property management performance across the Ray White Commercial network, says the process begins long before a tenant gives notice.
“The biggest piece is communication,” she says.
“You need to know the critical dates in the lease. Six months before expiry, you should be starting conversations with the tenant. Are they upsizing? Downsizing? Do they want to stay? If they’re a good tenant, you want the chance to retain them.”
Why critical dates matter
One of the most common and costly mistakes, she says, is failing to monitor expiry dates.
“If you miss a critical date and the tenant goes month to month, they can give thirty days’ notice and be gone. Then the landlord is sitting there thinking, ‘I’ve got a vacant property in a month’.”
In commercial, that timeline can be disastrous.
“It’s not residential where you can list a property one day and have thirty people through the next. Some spaces can sit vacant for six or twelve months. The earlier you know a tenant’s plans, the more time you have to run a leasing campaign.”
Staying close to the tenant
Leteicha believes many signals of future vacancy are visible long before formal notice is given.
“This is why routine inspections are so important,” she says. “If you’re managing a café and you walk in on a Friday lunchtime and there’s no one there, and you’ve seen that a few times, that’s a sign. If shelves are empty, if communication drops off, or if they’re not paying rent or outgoings on time, those are warnings.”
Face-to-face interactions matter, too.
“You should know the tenant and understand how their business is going. Conversations help you prepare and avoid surprises.”
Once a tenant’s intentions are clear, leasing agents should be looped in immediately.
“Leasing agents speak with prospective tenants every day. If they know a space might be coming up in six months, they can start canvassing early. Sometimes they already have someone suitable.”
This collaboration, she says, reduces downtime and improves outcomes for landlords.
Keeping rent competitive
Retaining strong tenants is often cheaper than finding new ones.
“You have to be competitive,” she says. “If there’s a lot of stock on the market, tenants can easily move and get a better deal down the road. Then you’re left with a vacant space that could sit there for months.”
Vacancy often leads to incentives, capital works, or rent-free periods – common tools in commercial leasing.
“Incentives are very normal. Owners might give a couple of months’ rent free depending on the deal. It helps the tenant with fit-out, but it also helps get the deal done.”
Beyond rent levels, the condition of the property plays a major role in tenant retention.
“Owners need to spend money on the property. Keep it up to date. Keep the landscaping tidy. Make sure facilities are clean. We’re trying to get people back into workplaces, so you want them to enjoy being there.”
Accessibility and security are also influential.
“Things like ramps, lifts, security cameras, or gates … these matter. They make a building easier to use and more appealing.”
While some property managers hesitate to recommend upgrades, Leteicha says commercial landlords generally respond well to structured advice.
“Commercial owners are very savvy and business-minded. Property managers shouldn’t be scared to ask for money. Owners want proactive guidance because they’re not always sure what improvements will help.”
A market that has shifted, not disappeared
Vacancy risk remains a concern in the current market, especially with ongoing flexible work patterns. But Leteicha believes demand for commercial space isn’t disappearing, it’s just reshaping.
“There will always be demand for retail, office, and industrial. The need might just look different. A business that needed 200 square metres might now need 100 because staff rotate. The requirement is still there; the size and style may change.”
For property managers, this means a renewed focus on staying close to clients and anticipating needs before a lease runs out.
“Communication is everything,” she says. “If you’re proactive, you can keep your income stable and support your landlord through whatever the market throws at them.”
