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.