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Eight Things Commercial Property Leasing Agents Must Know

commercial real estate broker podcast

Commercial real estate leasing is quite special in a number of ways.  There are pressures to work through with tenants and landlords.  In this audio program by John Highman, you can learn how to optimise the leasing process for better results.  (NB – you can get plenty of leasing ideas in Commercial Snapshot right here – its free).

John talks about the property leasing market today and what needs to be done to convert better enquiries from tenants.  There are some other ideas in the audio program about listing, marketing, and negotiating.

You can get the audio program below:

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How to Get to Know Your Commercial Property Market Deeply

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Commercial Real Estate Brokerage Audio

In every town or city there are things that you can find that relate to commercial property sales, leasing, or property management.  You can get plenty of leads if you drill down into the location.  Meet people and ask questions.   A good conversation will take you closer to a property activity.

Having a good database will always help with new business generation.  For the new people in the industry, the priority to establish a good database is high.  Three to six months of effort will usually get a contact list established; from that point on it is a matter of keeping the data fresh and accurate.

To help my friends in the industry get established and stay on top of the right market trends, this audio will probably help.  It talks about who you should know and why that should be done.  Enjoy.

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Commercial Real Estate Brokerage – How to Help Your Clients with Leases and Tenants

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Help your clients with their leased investments and tenants.

It is one thing for your client to purchase a property with the tenant in occupation. It is another for them to purchase a high quality investment with an excellent lease covenant and a high quality tenant.

The fact of the matter is that lease documentation will support the investment and on that basis the lease documentation should be analyzed for opportunity together with the tenant(s) before your client purchases the property.

What do they want?

Most clients looking to purchase a property will focus on a property and its location first and foremost. They may look into the basic facts of the lease structure and strategy across the tenancy mix, but rarely will they read the lease document itself as it applies to each and every tenant. That is where you can add value and provide commentary relating to the investment over time as that investment may be supported from and through the lease documentation. In a complex property with plenty of tenants in occupancy, that is then a real service and something that should be provided to your best clients.

So the message here is that you can find the right property for your clients in your local area taking into account the complexity of the tenancy mix and the lease documentation. You can determine and understand the investment benefits that the lease documentation in any property will provide to your clients over time.

Lease Facts to Know

Here are some ideas to help you do exactly that:

  1. RENTS: Understand the rental structures and strategies that apply to the lease document. Compare those rental structures to the prevailing market conditions. The type of rental will also have an impact on the outgoings recovery be that as a net rent or as a gross rent. Exactly how can the landlord recover the outgoings from the property given the prevailing market conditions and the existing lease documents? Should any of the existing leases be replaced with better documents when the next lease negotiations arise?
  2. RISKS: Are there any risk exposures within the tenancy mix? Risk will usually be created through a future threat of vacancy, or an existing vacancy exposure. You can deal with these problems through planning tenancy placement and negotiating leases well in advance prior to expiry.
  3. COSTS: Assess the levels of outgoings as they apply to the particular property under consideration by your client. How do those outgoings compare to the industry averages for the property type in the location? Look at the history of outgoings expenditure within the property over the last few years. Look for patterns of expenditure and make sure that the costs to run the building are genuine and real.
  4. MAJOR CAPITAL COSTS: Whilst ordinary running costs will likely be recoverable through the various types of lease rental and documentation, major capital expenditure items will not be recoverable in that way; they are a property owner cost. On that basis you can review the property for upcoming items of major capital cost outlay. Will your client have sufficient funds to cover such a capital expenditure in the timeframe required for renovation or rectification?

So there are some good things that you can do here when it comes to helping your clients with lease documentation and property selection. You could help them understand the way each and every lease document will work as part of their overall investment performance and result.

Look for the strengths and weaknesses in lease documentation as it applies to investment property today. Show your client exactly how they can benefit from a well negotiated lease and a high quality tenant.

(N.B. these ideas are also sent out to regularly to our friends in Commercial Real Estate Online Snapshot to help amplify brokerage results…. Get your access here)

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Commercial Real Estate Brokers – Dazzle your Landlords with Perfect and Relevant Monthly Reports and Updates

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When you work with commercial property landlords with leasing and or property management requirements, it is essential that you provide comprehensive and detailed monthly reports of property activity and location based leasing movement.  Any quality property should receive such detailed attention and documentary control.

What is Impressive Reporting?

So you as the specialized commercial property agent or broker can create some impressive reporting formats to support local property activity, asset performance summary, and recent leasing results.  Any landlord owning a high quality asset deserves such attention and communication.

Who Needs This?

Focus on the best clients and the best properties as part of providing this reporting and communication service.  In that way you can support and drive portfolio growth within a group of quality listings and clients.  A perfect reporting process helps you to consolidate and improve client services and outcomes.

Give all the Facts

Here below are some ideas to help you establish a comprehensive landlord reporting process:

  1. CLIENT REQUIREMENTS: Understand the property and or the leasing process from the client’s perspective. They will have certain factors of property priority and focus that are high on their agenda.  They will have particular aspects of property control and timing that will be very important to them.  Generally and typically speaking most landlords are focusing firstly on rental cash flow, secondly on tenant occupancy, and thirdly on existing and upcoming lease documentation.  After those three particular things are seen to be under control, other things can be looked at in any property report to your client.
  2. DIVIDE THE FACTS: Split your client or landlord report up into particular segments with logical headings and subheadings targeting the points of client focus. In that way you are showing the client that you totally understand what they are looking for and where they are heading with the property as an investment.  Some of the most common headings and sub-headings to merge into your report are income, expenditure, lease documentation, tenancy mix, vacancy factors, maintenance, rent reviews, lease options, and capital expenditure.  To those sections or headings you can then add summaries of market activity and the feedback you have received from any recent property inspections involving vacancies.
  3. MIX VISUAL WITH REAL AND PRACTICAL FACTS: The visual approach is sometimes complimentary and valuable to any client information process. Add some charts and some timelines to the reports that you provide to your client.  Help them see the strategies and the issues at play.  Offer them some solid recommendations based on market evidence and the facts within your report including income, expenditure, leasing activities, and market trends.

So there are some good things that you can do here when it comes to the landlord and or client reporting that you undertake.  If you manage or lease a high quality property for any client, they deserve being supplied with the latest information in a comprehensive way.

Keep your clients fully informed with both property performance and market opportunity.  A fully informed client is likely to be a valuable client to you in the future across many categories of activity.

You can get more tips for working with landlords and property owners in our eCourse ‘Snapshot’ right here.

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Commercial Real Estate Snapshot Podcast 225 – A Focus on Commercial Real Estate Leasing

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Commercial real estate training MP3

In this podcast I thought I should spend some time focusing on Commercial Real Estate Leasing.  That is for a number of reasons, the most important of which is that property leasing introduces you to the landlords and property owners who will eventually need more help in the future with things like sales and property management.  In other words a simple lease transaction can lead to other things.

I have split the audio program up into a number of  segments.  The summaries of the program are below:

  1. Why you should not let your tenants get out of control – in any property containing a group of tenants, the communication and control process is very important.  Tenants talk to other tenants and that can be a problem if issues exist in the building.  So this is all about those buildings with multiple occupants and how to connect with them.
  2. How you can be a commercial real estate leasing expert – you can do so much with your leasing knowledge.  You can establish tenant advocacy services, landlord leasing services, tenant mix advice, and basis brokerage leasing.  What sections of the leasing market can you see reasonable leverage and commission activity evolving from?  This part of the audio program will help you with ideas.
  3. How to work with franchise tenants and why that is a good idea – the franchise section of the commercial property market today is forever evolving and growing.  If you connect regularly with local franchise groups you can help them with property selection choices and any required relocation’s.   Get to know a few franchise tenants locally and come to understand what they need by way of property and when that is likely to occur.
  4. Some simple ideas for qualifying industrial property tenants – the industrial part of the property market is generally the first to respond in an upturn and also a downturn.  That being said it is a reasonably uncomplicated part of the industry.  Get to know a number of industrial tenants and businesses locally; see if you can help them with current and future property needs.

These are parts of the audio podcast by John Highman.  You can listen to the audio below.