Asset class / industrial & warehouse
Long leases. Managed to spec.
Industrial assets run on long terms, net outgoings and make good obligations that compound over years. We manage every clause as it falls due, across warehouses, factory units and distribution facilities throughout Sydney.
01 / Specification What management covers
The industrial management spec, line by line.
Not a brochure list. This is what falls under management on a warehouse or factory unit, with the obligation it answers to and the part that quietly costs owners money.
Clearance & hardstand
Internal clearance height, slab loading and external hardstand define what a tenant can actually run. We log them at handover and hold the tenant to the agreed loading, line marking and surface condition.
CONDITIONlogged at startRoller doors & dock
Roller doors, dock levellers and loading equipment fail under heavy use. We schedule servicing, record condition, and tie reinstatement back to the lease so wear does not become an owner cost.
SCHEDULEDservice cycleMake good of fit out
Racking, mezzanines, slab and partitions are the heart of an industrial make good. We hold a dated condition record so reinstatement at lease end is enforceable, not a negotiation.
ENFORCEDat lease endNet-lease outgoings
Council and water rates, land tax, insurance and statutory charges sit with the tenant on a net lease. We budget, invoice and reconcile against actual invoices every financial year so nothing is subsidised.
RECONCILEDeach FYRent reviews
Fixed, CPI or market: each review method is read off the lease and actioned on its date. A missed fixed or CPI increase is income that cannot be recovered later, so every review is calendared months ahead.
ON DATEno slippageBank guarantees
The landlord security against default and failed make good. We monitor expiry dates and require a replacement before the guarantee lapses, so the security is live at the moment it matters.
LIVEnever lapsedAn industrial lease is a ten-year document. It rewards the manager who reads it.Blox Commercial / commercial management only
02 / Leakage Where the money goes
Four things most managers miss on industrial assets.
Each one is recoverable income or security quietly leaving a portfolio that looks fine on the surface.
Unactioned fixed and CPI increases
Industrial leases run for years and usually specify the review method per year. If a fixed or CPI increase is not actioned on its date, the lost income is permanent. It cannot be back-claimed, so a single missed review compounds across the rest of the term.
Lost income, not recoverableOutgoings leakage on net leases
On a net lease the tenant pays land tax, insurance, rates and statutory charges. Missed annual reconciliations, land tax apportioned on the wrong basis, or a charge paid from the owner account and never recovered all mean you quietly subsidise the occupancy cost.
Owner subsidises the tenantMake good left to lease end
Racking, mezzanines, roller doors and slab condition cost real money to reinstate. Logged at the start, make good is enforceable. Discovered at handover, it becomes a dispute about who damaged what, usually settled at a discount the owner wears.
Enforceable becomes disputedExpired bank guarantees
A bank guarantee is worthless after its expiry date, and many expire before the lease term ends. If renewals are not monitored, the security evaporates at the exact moment a tenant defaults or walks away from a make good obligation.
Security gone when neededCondition record
Dated at handover so racking, mezzanine and slab reinstatement is enforceable.
03 / Mechanism How make good is run
Make good is a schedule, not a surprise.
The expensive make good fights happen when nobody recorded the starting condition. We run it as a schedule from the first day of the lease to the last, so the obligation is documented before it is owed.
-
DAY 1
Condition logged
Slab, line marking, roller doors, racking and mezzanine state recorded against the lease at handover.
-
TERM
Approvals tracked
Any tenant fit out, racking or mezzanine install is documented as it happens, with reinstatement noted.
-
T-12 MTHS
Make good notice
A year out from expiry we set the scope against the condition record and put the tenant on notice in writing.
-
HANDBACK
Reinstatement verified
The premises are checked against the day-one record. Shortfalls are quantified and recovered, not waived.
04 / Pricing What it costs
One fee. Your tenant pays.
Industrial management should cost what it costs. We charge a 5% management fee. On a net lease that fee is recoverable as an outgoing, so the tenant carries it.
- No contractor markups
- No disbursement margins
- No hidden charges in monthly statements
See the full breakdown on our commercial property management fees page, talk to us about commercial leasing for a vacancy, set up a compliant lease with Lease Launch, or read what sits under commercial property management.
Get a proposal05 / Answers What landlords ask
Questions an industrial landlord asks.
Industrial management covers the building, the lease and the money. On the building, that is repairs, essential services, fire safety, insurance, and condition logging of slab, hardstand, clearance, roller doors, racking and mezzanines. On the lease, it is rent reviews, renewals, arrears, bank guarantee monitoring and make good enforcement. On the money, it is rent and outgoings collection, net-lease reconciliation, creditor payments and monthly owner statements.
Make good is the tenant obligation to return the premises to an agreed condition at lease end. On industrial assets this commonly includes removing racking, mezzanines and tenant fit out, repairing the slab and line marking, reinstating roller doors and dock equipment, and resealing or repainting. The enforceable version is logged at handover with a dated condition record. Discovered only at lease end, make good becomes a dispute about who damaged what.
On a net lease the tenant pays the outgoings: council and water rates, land tax, insurance, and statutory charges. Leakage happens when outgoings are not reconciled against actual invoices each financial year, when land tax is apportioned on the wrong basis, when a charge is paid from the owner account and never recovered, or when the budget estimate is never trued up. Reconciled properly, the owner subsidises nothing.
Industrial leases run for long terms and usually specify the review method per year: fixed percentage, CPI, or market. Fixed and CPI reviews are calculated and invoiced on the review date. Market reviews require a valuation process with notice periods and a dispute path. A missed fixed or CPI increase is lost income that cannot be recovered later, so every review date is calendared months ahead.
A bank guarantee is the landlord security if the tenant defaults or fails to make good. The common failure is expiry. Many guarantees carry an expiry date earlier than the lease term, and once expired the security is worthless. Monitoring renewal dates and requiring a replacement before expiry keeps the security live for the moment you actually need it.
Blox charges a 5% management fee. On a net lease the management fee is recoverable as an outgoing, so the tenant pays it. There are no contractor markups, no disbursement margins and no hidden charges buried in monthly statements.
06 / Adjacent Where to go next
Built around the industrial corridors.
07 / Talk Let's discuss your asset
Send us the lease. We will read it.
One conversation is usually all it takes to understand the opportunity in your lease, your outgoings and your make good across an industrial holding in Sydney.
(02) 8883 4559NSW Licence 1013554 · ABN 20 633 280 109