Lease Fee Opportunities for Commercial Real Estate Brokers

office foyer entrance way
Leasing commercial office space in lucrative business.

Leasing is a lucrative part of the commercial real estate brokerage market.  There are always vacant premises to lease and landlords to serve.  The leasing agent with the largest database of tenants will usually make more in commission income than those agents that do not have a good database.

It should always be remembered that a good lease opportunity today that is converted to a successful transaction will quite likely move towards a sale opportunity in the future.  It stands to reason that your personal leasing services and specialisation will help you with growing market share in a number of different ways.  When you get to know a number of landlords, you build the levels of trust and the key relationships that are required for sales opportunity.

The fees for leasing a vacant property or tenancy will reflect the size and the quality of the premises.  On that basis you should concentrate your leasing efforts on the better properties and the larger tenancies.  In that way you will achieve better inbound enquiries and inspection conversions.  Low quality listings are just as much work if not more than the better quality properties.

In considering the commission and fee opportunities from a landlord or a property, understand the following factors:

  • Lease rent review fees
  • Lease renewal opportunities
  • Assignment and subletting requirements
  • Vacancy management and leasing
  • Vacancy marketing
  • Project leasing
  • Tenant relocation
  • Tenant mix advice
  • Lease renegotiation as part of a refurbishment
  • Franchise leasing opportunities
  • Tenant advocacy work

So there are a good number of ways for leasing brokers to attract fee opportunities from professional leasing services.  Local area specialisation and leasing knowledge will help you achieve the momentum required.  I go back to the point that the size of your database will be critical to the market activity and commissions that you generate.  As a leasing specialist, you do need to know a lot of tenants and a good number of high quality landlords.  That is where your database will help you greatly.  Every day it needs to be nurtured and grown through ongoing contact.

So let’s look at some strategies and that you can implement in your professional leasing services.  Here are some of the important things to understand and implement.  You can add to this list other factors relating to location and property type:

  1. Review the history of the area as it relates to business change and opportunity.  There will be certain properties and locations that are more popular than others.  Understand the locations that will create the best levels of interest when it comes to property occupancy.
  2. Check out the market rentals that apply to your property type.  Give due regard to the variables across suburbs, towns, and cities.  Those market rentals will vary greatly and have a lot to do with property condition, ease of access, services, and improvements.
  3. Lease incentives will vary subject to the factors of supply and demand for lettable space.  Watch the number of new property developments coming into the area that could change the balance of occupancy.  They will also have an impact on incentive size and availability.

With this basic information, you can focus your efforts when it comes to property leasing opportunities.  Every day you should take further steps into building strong tenant and landlord relationships.

Ever Lasting Tenant Prospects in Commercial Real Estate Agency Today

businessman giving thumbs up signal
Top leasing agents have great databases full of tenants.

In commercial real estate today the leasing of premises can be a real challenge.  This is especially the case if you do not have a good database of tenants to call on and connect with.  This is where expert property leasing specialists will have the advantage providing they have a good collection of tenants that they regularly connect with.

Here is a fact for you. The difference between an ordinary leasing executive and a top agent leasing executive is the database.  The more people that you have spoken to previously and that you can call on with confidence and relevance today, the better off you will be with your leasing conversions and business.

In this property leasing market, many variables exist such as:

  • Amount of vacant space available
  • The enquiry rate for different property types
  • The quality of the listings
  • Market rent
  • Rental types (gross and net)
  • Comparable and competing properties
  • The ability to pay market rental
  • The ability of the landlord to accept true market rentals to encourage a lease
  • The rate and type of incentive that is available for tenants in differing property types
  • The supply and demand of space in the different property types

All of these things produce variations of what tenants want and how they can negotiate on a lease.  For this very reason you really do need a comprehensive collection of tenants in your database.  As you add prospects to that list, make sure that you keep in regular contact.  This industry is based largely on relationships and trust.  Top agents win the deals and the listings mainly because they have the trust established with the right people.

To build an ‘everlasting’ list of tenant prospects today, here are some strategies for you:

  1. Understand that the best results will come to you when you specialise.  That will give you the ability to talk rents, leases, and improvements in properties with greater relevance.
  2. Determine the property type and tenant type that you should be working on.  Make sure that the segment of market is active and growing (not contracting).
  3. Get to know the rental and leasing strategies behind leases today with your specialist property type.  Your client will normally be the landlord, and they need help to see the best way to attract lease enquiry and tenants to the property.
  4. Talk to 15 businesses per day.  Most of that can be done on the telephone. Importantly these businesses should be ‘new’ prospects that you have not spoken to before.
  5. Depending on your area and location, you should have over 600 businesses in your database that you speak to regularly.  Focus on relationships and property requirements.

Consistency is the key to getting results in commercial property leasing.  Examine your diary and personal systems to ensure that you really do connect with enough of the right people.  When you have a good database, landlords will be attracted to you.  Landlords cannot ignore a top agent with a relevant and large database.  Sell your leasing services on that basis.

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