The client or the owner of a commercial office building
wants to know that you have a definite plan and a ‘toolbox’ of strategies that
you can apply to their leasing challenge.
The ‘generic’ approach to office leasing
doesn’t work anymore. You are the
Be more specific with your
leasing engagements with properties and clients. Put the client’s
property leasing requirement firmly into the property market in your location
and build your leasing stories and tactics around that.
Asking the Right Leasing Questions
There is no ‘one fits
all’ approach to finding tenants and filling any vacancies in office leasing. Be specific when you try to help your
landlord clients with their leasing challenge; put some ‘purpose’ into your
leasing plan and provide ‘clear strategies’.
Here are some ways you can do that:
Know the major buildings locally – As part of any leasing project, be aware of the other buildings in the location that could have an impact on your client’s property and the known or upcoming vacancies. There will need to be a ‘point of difference’ to help your property with its leasing requirements stand out as relevant and valuable to tenants and local businesses. How can you do that?
Target tenants and businesses – Certain tenant types will match your vacancies in your listed property. The marketing of the vacancies then becomes more direct and specific. Build a plan of specific marketing to reach out into the best tenants and businesses that you think would be good candidates to occupy your listed property.
Vacancy reduction is normally achieved through tenant attraction and retention – Every exclusive leasing appointment should have a tenant attraction and retention plan. That will involve some specific rents and lease offerings with existing tenants. Each year those plans can be modified as part of the
Incentives and benchmark rentals should be set – The property market will change, and with that change will come variations with supply and demand impacting your lease listings. The enquiry that you want or get with your property listing will be reflected from the rents you are asking for, and incentives that you are providing. Understand what other tenants are being offered currently in the local property market, and then package your property and its vacancies to have some advantage in rental and or incentive offerings. Make your property the ‘best value’ in office leasing locally. It doesn’t matter too much where you start with rentals, but it does matter where things finish. Your rent review strategies will be a useful way of improving things from the starting rent.
What are the improvements and fit-outs possiblities to apply? – Prepare your vacancies for leasing by considering the improvements, the services and amenities, and the fitout configurations. The size of the floor plates will also have an impact on fitout design.
These office leasing strategies will help you build some
purpose and momentum into your professional leasing services for your
clients. Be comprehensive in how you
build a lease strategy for your clients
and their property vacancies. Be
all-inclusive in how you look at attracting potential tenants to the asset and
its vacancies. These are the qualities
of a professional leasing agent in office property today.
A local tenants list will help your commercial real estate leasing business thrive. It is such a simple idea, and yet many leasing agents overlook the value and the creation of a leasing register for their territory and buildings.
Activate your leasing market with better tenants and landlords. Think about these questions relative to your location or allocated precinct of properties:
How many businesses are in the zone?
What do local businesses expect when it comes to leasing occupancy?
Who are the larger landlords for the location?
Why will tenants and landlords use your services in leasing?
What is the future of space supply in your zone?
How many older buildings do you have that need renovation or demolition?
What are the rents and the incentives today when it comes to new leases in modern premises?
These questions and the answers will help you move into productive tenant discussions through a canvassing activity. Make your canvassing calls every day to the tenants of the local area and in your priority buildings. Know what they are thinking and what they need to move to other properties. Understand why they may stay in their current premises. You can negotiate either way depending on who your client is in the leasing activity.
Leasing Questions that Get to the Facts
These are the questions that you need to address talking to tenants and in leasing property:
Where are they located? Understand the location from the tenant’s perspective. They may have transport requirements, a client base nearby, or some property use factors of a critical nature.
What is the type of building are they situated in now? Know the property in which they are located, and the services and amenities therein. If necessary, visit the building yourself and do some preliminary checking.
What are the types of improvements that they require? Understand the floor area, the floor plates, how a property or tenancy is used currently, and what could be the critical services of the building for a tenant in new occupancy decisions. Questions like security, car parking, client access, climate control, and signage rights can be examples of special requirements.
When does their lease expire? A simple date like this will allow you to predict leasing change and or a future negotiation opportunity.
Who is the decision maker in the business? There is always a series of managers in a company or corporation. The leasing research activity for a business is usually delegated to a junior manager to ‘gather the property market facts’. If you are working with a person of lower rank in the corporate or company chain, ask the questions and provide the answers that they need, however, selectively get to the real facts of the final property leasing decision. Who will be making that decision?
Commercial real estate leasing is quite special in a number of ways. There are pressures to work through with tenants and landlords. In this audio program by John Highman, you can learn how to optimise the leasing process for better results. (NB – you can get plenty of leasing ideas in Commercial Snapshot right here – its free).
John talks about the property leasing market today and what needs to be done to convert better enquiries from tenants. There are some other ideas in the audio program about listing, marketing, and negotiating.
Having spent a lot of time working on and in various building and leasing projects over the years, I know that the opportunities of working with commercial tenants and landlords today will always bring in other business openings into the future. (NB – you can get more commercial brokerage ideas here in our Snapshot program – its free)
Everything in our industry is linked, and your clients locally will usually have diverse needs in leasing, sales, and property management at some stage. It is all a matter of timing and relevance. Are you ready for some property leasing action?
Landlord and Tenant Opportunity
Recognize that a simple property lease transaction can open the door for you with a key landlord or business owner. Relationships are important. It can also be said that if you know plenty of things relating to local rents, lease documents, occupancy costs, property performance, and fit-out improvements, you can add considerable value to a property in capitalized cash flow. Strategy and ideas can help facilitate an agreement between a landlord and tenant.
In this audio program, I talk about the importance of the tenant and landlord relationship and how you can tap into it as part of your commercial real estate career.
How involved are you with your database list currently?
How accurate is that list?
Are you building some pipeline of contact with all the people in your list?
The secret to finding and converting more commercial real estate tenants will always be in your canvassing and prospecting activities as a broker or an agent; those are the specific activities that you activate and deploy every day into the local business community and or the tenants in your location. Landlords and tenants will be critical to the growth requirements that you have in commercial real estate leasing. Grow your contact model, and grow your real estate business.
Consider these questions:
How many new tenants to contact each and every day?
Understanding your town or your city, and the local businesses to you connect with regularly each 90 days?
If you were to show the landlord your database to impress them as part of the property leasing presentation, how impressive with your database be, and would it attract the landlord to your services?
Ratios and Results
There is a ratio to know and respect here, particularly as part of this leasing and investment property process. The number of listings that you convert exclusively over time will be influenced greatly by the number of landlords that you know personally and connect with regularly. Focus on building trust and confidence with the landlords that you work for. Provide regular updates of the leasing market together with comments leading to market rentals, incentives, and lease strategies.
Audio Program about Tenant Attraction
In this audio program, john Highman shares some of the proven strategies and ideas that can help you find better quality tenants and better landlords to work for. Honing your prospecting activities with a bias towards quality and ongoing contact will always be a valuable strategy to deploy. Connect with the landlords and tenants using relevant local information and local market knowledge. Connect with landlords and tenants at least once every 90 days.
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