Here are some tips that I recorded in MP3 format for my commercial real estate friends. These ideas and comments relate to marketing and branding activities for top agents. You can get some ideas from how you can improve market share.
When it comes to leasing commercial and retail property today, franchise tenants are a special opportunity for property agents. These franchise tenants already have a proven business model, established business brand, and good track record. On a regular basis those franchise tenants are going to be looking for new premises as part of the expansion of their network of operations.
Landlords and Commercial property agents should work closely with these tenant types. To get that process underway, visit surrounding suburbs and towns. Look at the established franchise brands in all property types. See if those brands are already located in your territory or if they would consider a move or an expansion in that way.
So we need to set some rules here:
Franchise tenants know what they want by way of premises given that they understand their customer profiles and ideal premises configuration and location.
The leases used in these circumstances are likely to be a variation of the standard lease used by the franchise tenant.
The lease term will need to match the duration of the franchise agreement.
The branding and signage of the tenancy will require consistency that suits the property but also attracts customers. Brand consistency is really important when it comes to premises choices and occupancy with franchise tenants
Commercial and retail real estate agents can do very well in working with this segment of the market. Get to know the franchise groups and what they are looking for in property type and location.
Here are some questions to ask and issues to work with that can help you with this type of tenant:
What type of property best suits their operations now and in the future? Pay particular attention to expansion and contraction needs. The tenancy may have specific challenges when it comes to ongoing occupancy within their franchise agreement.
What locations are best suited to growth of trade and business? In can be that main roads or highways have something to do with property choice. Property and business exposure can help the franchise group within its branding.
Where will their customer be coming from and why? You will need some local population and business demographics to help you here.
Check out the competitors for the franchise tenant. Whilst the tenant you are working with will already have a good idea about their competitors, you also should seek to understand those market factors.
The rental structure for the tenancy will be a balance between the requirements of the landlord and the cash flow structures of the franchise group. The franchise fee will be an added cost in the viability considerations of the business in occupancy. The landlord will still want a market rental for the premises based on prevailing market conditions. Most franchise groups will take between 5% and 10% from the gross trading figures of the tenant. It is wise to ask the tenant for their cash flow projections based on occupancy costs, expected levels of trade, and local business conditions.
You can do very well as a commercial or retail property agent when it comes to working with these tenancy types. It is simply a matter of understanding and specializing with franchise brands. You can then identify the right properties that suit their business activities and projections.
A retail shopping centre is a unique property type and there are a few things to look at and understand if you are to take a retail property to the market in sales, leasing, or project activity. Each of these three retail categories will give you trends to capture and monitor as part of your […]
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Every broker or agent should have a sales plan in brokerage. That plan will give momentum and focus to listing growth and client contact. In this video today, we share some specific ideas behind creating a successful sale plan in your career. Something that you can build momentum around. Here is the video:
In today’s commercial real estate podcast we share some ideas across some very practical and useful strategies in sales and leasing. If you are wanting to boost your results as an agent or broker, there are plenty of things in today’s program that you can do locally in your town or city. There are five […]