ALLIANCE GROUP JOINS THE SPACE RACE
News > news - 21 Apr 2008
As part of its ongoing diversification and growth strategy, as well as the
focus on wealth-creation for it's clients, Alliance Group has launched a
Commercial Leasing Division in Gauteng. Headed up by Rodney Luntz who has
17 years experience in the industry, the division is set to offer leasing
coupled with investment sales services to the market.

"The Division fits in perfectly with the Alliance Groups current service
offering", says Luntz. "We are now not only able to auction property, but
should our clients wish to hold their properties as an investment we are
able to maximise their return by letting their property as well."

With office vacancies at an all time low and industrial demand at an all
time high, there is tremendous opportunity for current owners to maximise
their investments by increasing their rentals, whilst tenants on the other
hand need to be extremely cautious when renewing their leases. "This is
where we can come in" says Luntz - "We now offer a professional consultancy
service and renegotiate the lease on behalf of either the landlord or the
tenant. From a tenant's perspective the rental is normally the second
biggest expense (second only to salaries) in a company's income statement
and thus needs to be managed accordingly. From a Landlord's perspective,
increasing the rental is an optimal way to maximize return on investment,
but speculative increases may cause the tenants to vacate and relocate
elsewhere, so it becomes a fine juggling act - and one best left to those
that have an intimate knowledge of the market and the prevailing as well as
future trends"

Luntz cites the latest SAPOA vacancy report fourth quarter 2007 - Sandton
has a total vacancy of 3.2% with rentals varying between R80.00 per sqm
gross to R130.00 per sqm gross, with a median of R107.75 per sqm gross.
"These are all A grade rentals and an accurate assessment of the rental
value can result in a 50-60% increase in the value of the property!"

"We are currently mandated by all the major institutions and property funds,
as well as by private investors who have already experienced the added value
we offer. Should a tenant wish to relocate we are thus able to show him
whatever is suitable in the market, negotiate the deal on his behalf and
ensure a smooth relocation to new premises. We also assist in space-planning
as well as providing our clients with maximum efficiencies in their space
requirements, thereby maximizing their returns and keeping them ahead of the
game."

"We believe in adding value, and in doing so creating wealth for our
clients" says Luntz "this requires us to be continuously innovative- which
is one of our core competencies."
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