The 3 ‘Ps’ of success – presence, presentation and peers
The success of a business in the services sector can largely rely on the three ‘Ps’ – presence, presentation and peers.
Presence being the overall visibility and convenience of the company’s building, presentation meaning the appearance of the shop front and fitout of the space, and peers being the nearby tenant mix.
This is particularly the case for many businesses within the health industry, such as radiologists and cosmetic specialists, as these businesses need to depict a hygienic workplace and typically offer complementary services providing referrals to each other.
So when a cosmetic medical specialist engaged one of our buyer’s agents to find a space for their clinic, the three ‘Ps’ were a top priority in the search criteria.
The client, who specialised in skin care, had been leasing a commercial premise in Perth’s inner-northern suburbs for 7 years. However, with her business well established, the client decided that it was time to acquire her own property where she could relocate her clinic.
The client’s brief was fairly flexible, which gave our buyer’s agent great scope when completing their research and creating a shortlist of potential premises.
After several months of research, property inspections and due diligence from our buyer’s agent, the client showed particular interest in one of the properties that we recommended.
The property was a 122sqm office space in Mt Hawthorn in a highly presentable building and was in a good location being next to other complementary businesses, including a physiotherapist and other medical specialists.
While the premise was slightly bigger than the client had required, the additional space would allow for future growth of her business, which is important for those acquiring a premise for owner-occupier purposes.
Although the space was zoned for office use, our consultant saw the potential of the premise and showed it to the client, explaining that if we could have it reclassified for medical use, it would be an ideal location – it also featured the three ‘Ps’, presence, presentation and peers.
With the client happy to proceed on this basis, our consultant was able to negotiate the acquisition of the premise on the basis that the local council would approve a reclassification of the space to medical.
We were able to secure the property for the client with a small deposit while the decision was before the council.
Under the terms of the agreement, our buyer’s agent also negotiated that if the space couldn’t be reclassified the client would be entitled to a full refund of her deposit.
This allowed the client to secure the premises while maintaining peace of mind that if the plan couldn’t proceed as intended, she would be refunded her full deposit and the search for her new clinic location would continue.