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?
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.
If you know about the supply and demand for property locally, you will understand just how to connect the right tenants to certain vacant properties in your city or precinct.
In this audio program, John Highman talks about the market trends that you can work with in commercial real estate today. Understand that the best properties to lease will always be the better quality ones in the locations that are attractive to businesses.
When you lease a commercial or retail property today, it pays to set some rules to the process so you can correctly match the tenant to the property for the fullest of available advantages.
Investment property leasing is where all the important decisions are made to find the best tenants for the investment performance. Each tenant is different, each landlord can be quite special, and between both of those stakeholders you have a property and its occupancy opportunities.
Establish Your Commercial Property Leasing System
Are you ready to specialize in leasing and investment property performance?
Know who you are talking to and always get their contact details first – When an inquiry comes in from a tenant, ensure that you are talking to the right person who you believe is in control of the business. Before you disclose too much about the property, write down the important contact details of the person and the role that they play in property selections and choices. Don’t be too eager to talk about the property without the fullest of contact details from the person you are engaged with in conversation.
What do they really want in leasing new premises? – There will be a main motivator(s) behind a tenant in changing properties. Questions will always get you to a few important points to understand. Of the few factors of importance in finding new premises to lease, a couple of factors will be high on the tenant’s agenda. Get to those facts fast and directly. Delve into location issues, and then improvement requirements in any property to be leased.
What can they afford? – Is it a tenant’s market or a landlord’s market in your location currently? There are differences to watch for, and those differences will impact your negotiations with rents and lease terms. Some tenants have little understanding of the current property market conditions, and the same can be said for the landlords that you serve. Be prepared to quote real market evidence from recent lease deals to occupancy arrangements, lease negotiations and market rentals. Tell the tenants and landlords that you work for how they are positioned in the current property market and how realistic their expectations may be in changing property today.
What property improvements do they need? – Every business will have challenges of placement when it comes to fitting into a new property. Your job is to bring ends to meet together across the void of a leasing negotiation. Your client is the priority above everything else. What are the targets of your client in the lease negotiation?
Factors of supply and demand will impact your negotiation – Always track the vacancy factors in your location. Those vacancy factors will be impacted by supply and demand for the location and the property type. Higher vacancy factors push up lease incentives. A volatile leasing market will drive greater elements of risk for landlords, and that is where a tenant retention plan will help you with the overall income stability for your clients. Become a specialist in tenant retention, lease negotiation, tenant sourcing, and lease marketing. There are plenty of leasing advantages to be had from an active property market with tenants and landlords.
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