If you are working as an agent or broker on the leasing segment of the market, then look to the ways that you can improve results for the clients and the properties that you serve. A focus on ‘results’ allows you to convert more listings of better quality, and on an exclusive basis. You could say that ‘relevance’ is at the centre of all of that focus and conversion.
When you control the property market and your listings, you can build more momentum into your property efforts.
If you are perceived as the top agent for the location or property type, then ‘exclusive’ listing conversions will not be such a problem.
Create Your Opportunity this Way
Let’s drive some more opportunity your way. Answer this simple question. How can you bring better results to the clients that you serve in property leasing? That’s the question that you need to answer in a very visible way locally.
The tenants and landlords of the location should know you as the ‘go to person’ for resolving leasing challenges. Your leasing ‘visibility’ has to be specialized and locally driven. Here are some ideas to help you do that:
Finding more tenants – Get to know more tenants comprehensively. It is one thing to know who the tenants are in a location or building; it is another to know what they are thinking from an occupancy perspective. The best way to get to know tenants for a location is to concentrate in streets, properties, and business types. In that way you are not ‘shooting blind’. Specific tenant contact will help you with your conversions.
Improving market rents – Hopefully you know what rents are for a location and property type. Property age will have something to do with the rental levels, and market rent will be impacted by supply and demand for the location. So look at those things and determine how you can improve rents for the landlords that you act for. Merge those ‘income improvement’ statements into your listing or client presentation.
Strengthening investment performance – You can improve lease outcomes and results in an asset over time by creating a better lease document with better tenants. All of that will happen from the initial lease negotiation. Look at negotiation on the lease from your client’s perspective; drive that aspect forward. Look at the averages of rent for the property type, understand the asset in question, and build better landlord or tenant perspectives on why the property should be leased in today’s terms.
Shorter time on market – Vacancies cost money within the investment, so find ways to shorten the time on market. Asking rents will have something to do with that, but also will the factors of marketing, negotiation, and inspection. You can improve your professional processes in each of those 3 ways for the transactions you are working on and your clients. Create more inquiry per listing and seek to create better marketing outcomes for all of your exclusive listings. They are the properties that really matter, so shorten the time on market for your exclusive listings, and show your clients how you do that in a positive way.
Relevance is everything in commercial investment leasing. Create significance in your professional property services. Focus on results for your client.
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.