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Timeline of Leasing Commercial Property Today

facade of commercial office building showing windows
Establish timelines that can help you lease commercial properties quickly and effectively.

When it comes to leasing commercial or retail real estate today, there is a distinct timeline to the process that should be optimised and driven by the commercial agent or realtor.  Failure to drive the process can see the landlord or the tenant slow the entire process down.  When the property market is tougher like that of today, a slower lease transaction is not a good outcome for any of the parties.

As a special note it is worthwhile observing that many a solicitor working on the part of the landlord or tenant will also be a source of slow action or response.  Yes, I know solicitors are busy people, but the landlords lease document and transaction is really important.

So here is a timeline to develop and use in the marketing and leasing of commercial or retail property today.  These are the main issues to consider in leasing, and you may be able to add to the list based on your location and property type.

  1. Inspect the premises to be leased so you really know the features of the property and just how you will take people around the premises.  A well-considered inspection process will help in negotiations and conversions from initial enquiry to the creation of lease.
  2. Remove any hurdles or presentational issues in the property before the marketing starts.  That may mean renovation and carpeting or similar upgrades.
  3. Define the target market for the property to be leased so that you really capture the right people from your marketing efforts.
  4. Establish a targeted marketing campaign to attract the right enquiry.  As part of that process, choose the right factors that help you promote the property on the internet and in the newspapers.  What features exist in the property that will help lease it?
  5. Get a signboard on the property early in the marketing campaign to send the message to all the local business owners and property investors.  When the signboard
    goes up, take brochures to the local nearby businesses to spread the word about the property availability.
  6. Qualify the tenants coming off the marketing efforts before you show them the property.  The same rule applies when someone rings you off an advert in the newspaper or on the internet.  Ask the questions; in many cases the call may not be genuine and could be competitors seeking information.
  7. From a good property inspection, any lease negotiation should be evidenced and initiated in writing.  This will be by way of a well-constructed letter of offer or lease agreement.  Get the parties to show their intention on paper.  As part of that process ensure that you get a good deposit commitment from the party making the offer.  That should also include an agreement to provide a bond or band guarantee to the landlord as part of taking a lease from the tenant.
  8. If agreement is reached between the parties to do a lease, then documents should be prepared quickly by the landlord’s solicitor.  There should be a follow up process to ensure that the signing of the lease can occur quickly and effectively.  Add to that the necessary paperwork and deposit or rental money and you have a complete cycle of lease.
  9. When all factors of the lease agreement are correctly actioned by all parties, then and only then should the keys to the premises be made available to the tenant for fit out works to commence.  As part of that, the landlord should be approached to obtain the approvals of the new fit out construction and configuration.

So there are a lot of things to do here.  Be well prepared and use a checklist to the process.  Your leases will then be more effective in both negotiation and completion.

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Top Presentation Tips for Commercial Realtors

boardroom of an office
Be prepared for those tougher commercial real esate presenations in boardrooms.

When you do a commercial property presentation today to win a listing, the competition agents are likely to be ‘breathing down your neck’ and connecting with the client with all types of bonuses and ideas.  On that basis your presentation just has to be the best and most relevant to the client.

Why are you the best agent to market this property?  The client has to see the answer quite clearly and efficiently.  Your presentation will do that.

Here are some common problems that we see in today’s market.

  • The competition agents will be chasing your client or prospect constantly for a listing.  They will be filling the clients head with misinformation and ideas to destabilise your listing or opportunities.
  • The price or rent that you offer the client is likely to be different than that which they require.  Show them some relevant market evidence to help them understand the circumstances of the market today.
  • The listing type that you need may not be what the client wants to give you.  Always go for an ‘exclusive’ listing.  Open listings are a great waste of your time and effort; if they sell or lease, it is more from luck than anything else.
  • Your fees in both commission and marketing can be a hurdle.  Set fees that are based on a quality service and the time that you are going to apply to the listing.  Tell the client how you will take their property to the market.
  • The method of sale or lease can be of concern to the client.  They may not want to take too much risk in the sale or lease process.  That being said, if you know the right way to sell or lease the property then have strong evidence to support your arguments.

Here are some presentation tips to use as you present your ideas to the client about their property and their needs today.

  1. Do not use a fixed or written script that is likely to limit the presentation.  Be open and natural as you talk to your prospects to show your confidence and knowledge that can help them.  The confidence that they see from you will come from the body language and the words that you use.
  2. Use all the clients’ senses to convey the message.  Bring together two or more senses in your presentation so the client is involved and connected to your story.  You can do that by giving them something to hold (a proposal) whilst you show them some images or photos of the property, and as you explain your ideas and strategies.  Fully connect at all levels.
  3. Have solid recommendations that are innovative and relevant to the best outcomes for the client.
  4. Show them the competition properties that they are up against and how you can adjust around those issues.

Know the market and the relevant property solutions that are applicable to your market.  It is notable that many agents and realtors are too general in the presentation.  You must build your presentation on relevance and speciality that is connected to the property.  The client has to see that you are the best choice of agent to help them.