I have been using prospecting letters for many years as part of a balanced new business program in commercial real estate. The letters can be used in sales, leasing, or property management; the trick is to make sure your letters are well designed and specific.
Finding new clients and getting them to talk to you can be a very challenging process. In this audio program I share my rules about the direct mail systems that tend to have more success in commercial real estate brokerage.
You can get some good commissions from leasing office vacancies in most towns and cities, and that is certainly the case if as the agent or broker you focus your efforts on quality buildings in the better locations. That being said, you still have to win the listing or leasing appointment from the landlord. They can be a bit allusive and selective when it comes to working with some agents.
So how do you attract and convert listings to lease? It’s a competitive property market out there and many agents will claim to be the best agent to fill the property vacancy; the reality can be far from the truth, as generic marketing is just too common. How will the landlord make the right choice? Why are you the better agent to lease the vacancy? Real answers and strategies are required to win the new business.
Create a Great Proposal for Landlords
Your leasing proposal will have a lot to do with winning the leasing opportunity; agent confidence and property knowledge will be the other big parts of the process. Here are some other tips to help you convert more lease listings when pitching to landlords in this segment of the market:
Tenant targets – Define the best segment of tenants for filling the property or vacancy as it exists today. Your tracking of inbound lease enquiries to your real estate office will help in providing enquiry facts and information.
Supply and Demand – The current levels of space supply and demand will impact enquiry from tenants. Tell the landlord about the supply and demand factors locally, and explain the impact of newer properties on the existing properties.
Rental Strategy – Tenants today expect rents to fall within the averages of industry expectations; they know what rents are doing locally within their location. Whilst the quality of the property and the premises will have something to do with setting the rent for the premises, the landlord should not be overly aggressive in the initial asking rents. High rents create stale listings.
Outgoings Recovery – The same strategy applies in identifying outgoings and how they will be recovered as part of lease occupancy. Rent and outgoings are set based on the property itself but comparisons should be applied across the property market locally. Research the competing properties so you can confidently package the vacancy for the best levels of tenant enquiry. Understand if your property vacancy has reasonable or high levels of outgoings.
Incentives – Rarely can you attempt to lease a property without some incentive to attract tenants. The question is then, ‘What will be the best incentive for the landlord’s vacancy situation?’ You have a few choices, such as rent free, discounted rent, fitout, cash, and capital expenditure on tenant related enhancements such as technology. It really doesn’t matter what type of incentive is chosen for the landlord, however the cost of the process should be recovered from the negotiated lease over the initial term.
From these simple things you can formulate some specific leasing recommendations for your landlord client. Confidently show them the best way to attract the new tenant enquiry, and then demand an exclusive listing in exchange for your professional services.