Tenant advocacy and property leasing services are a good part of commercial and retail real estate. You can do something with that. In today’s podcast, John Highman shares how you can work into this part of the industry and why that is a good idea.
Know all the local tenants and the upcoming lease expiries in the local area. As you talk to ever more local businesses you can track the predictable lease expiry dates. You can also track the options of extended lease periods. Either way, there will be tenants requiring local leasing information and negotiation assistance. Are you the person to help them?
The fact of the matter is that they will need expert help; that is why I said that it is best to focus on the larger companies and corporations. They are generally the tenants that will pay handsomely for expert leasing help. Lock them in with a client relationship and a commission agreement for a satisfactory outcome.
When you have a commercial property to take to the market, you can do so with great effect if you follow some simple rules. In today’s podcast, you can learn how to tap into your real estate market with greater effect.
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 property strategy and plan. You can do that with or for the landlord.
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?
When you work in commercial or retail real estate leasing, your tenant database is critical in your business processes and ultimately the lease conversions. It must be separated from everything else as there are special issues and situations to track with all tenants. A good quality tenant list will help you find and win more landlord clients. It is hard for a landlord to ignore a comprehensive list of tenants in a location or across a property type.
Location preferences – that will be the precinct or zone of the city or suburbs. Some tenants need to be near main roads, transport hubs, other businesses, customer bases, or city zones. Ask questions when you talk to a business owner about location priorities and put that information into your tenant list.
Size of premises – understanding the different types of buildings and businesses, there will be factors of focus with office area, warehousing, showroom, car parks, and common areas. A specialist leasing person will probe into those factors and questions.
Lease expiry dates – ideally, it pays to work with tenants at least 12 months out from a lease expiry date. In that way, you can prepare them for premises change, budget, and the logistics of changing a building.
Special needs – some businesses have unique requirements of building choice and layout. The best way to investigate that is to know where they are coming from now and how they operate as a business unit through the year.
Improvement requirements – staff and customer activities will impact improvement locations and fit out design. Differentiate between the customer and sales areas of a business, and then look at the way in which staff and business processes occur. Typically, a business will have ‘pods’ of focus such as sales, service, administration, storage, technology, and production. A good architect should be consulting with the business owner to advise on how those zones are positioned and how they operate in a building and new lease situation.
So, a tenant list and database should have the capabilities of storing and tracking this information. One of the quickest, cheapest, and easiest ways to set up a list that contains the information that you seek to track is to use Microsoft Access or similar. YouTube offers plenty of free instruction on Access Databases and how to build them.