Burgess Rawson General Manager for Victoria, Wendy Thomson, warns that many investors, particularly first-timers, severely underestimate the complexities involved in managing commercial assets.
This often leads to missed opportunities, misunderstood lease obligations, and underperforming returns.
Ms Thomson said that investors sometimes choose self-management or low-cost options based on misconceptions about commercial property.
“Many are driven by the belief that commercial properties are relatively hands-off once leased, or to avoid frustrations from previous poor experiences with property managers,” Ms Thomson said.
Commercial leases contain complex clauses that directly impact an asset’s financial and legal standing.
Critical elements requiring ongoing attention include rent escalations, market reviews, make-good obligations, insurance requirements, tenant fitouts, and important dates such as renewals and rent reviews.
Overlooking these details can have serious consequences. Inexperienced management frequently results in missed rent reviews, incomplete recovery of outgoings, overlooked statutory requirements, and unenforced tenant responsibilities.
“These oversights may seem minor at first but can quickly escalate into serious liabilities,” Ms Thomson said.
Professional commercial property managers offer far more than basic rent collection services.
They interpret lease terms, enforce obligations, manage risks, and implement strategic approaches to protect and grow investments.
Their expertise includes proactive handling of outgoings, repairs, and compliance issues while maintaining strong tenant relationships.
Ms Thomson said that successful commercial property management requires a disciplined, strategic approach rather than treating it as a simple administrative task.
Engaging the right manager provides better oversight, transparent reporting, and measurable results.
The benefits of professional management include better anticipation of lease events and optimization of rental income according to market conditions and lease triggers.
This transforms what might otherwise be a passive investment into a professionally managed asset with stronger performance potential.
Burgess Rawson, established in 1975, has positioned itself as Australia’s largest locally owned commercial agency, with offices across the country owned by principals in each state.
This structure gives clients direct access to decision makers and creates what the company describes as “a highly motivated and stable operation.”
“Commercial property is a valuable investment only when managed with expertise. Understanding the lease is fundamental,” Ms Thomson said.
“Investors who treat management as a strategic function rather than an administrative task set themselves up for long-term stability, tenant retention, and sustained income growth.”
