The commercial real estate leasing process is quite special. You can work with tenants or landlords, but either way you will need some local area information and the tools to help you through any property inspection and negotiation.
A vacant commercial property is a significant frustration for an investor. They are loosing out on rents and outgoings recovery. Over time that can all add up to a large amount of money and financial discomfort. Look at vacancies for the opportunities that they are for you in leasing brokerage.
If you have had a bit to do with tenants in leasing any commercial or retail property you will know that they can really delay things for their own reasons, thereby impacting the landlord in negotiation and slowing the agent as to finalizing the deal. As the leasing professional your job is to work with that challenge and encourage agreement to the benefit of the client.
Understanding the tenant’s situation now and applying that requirement to the current property market will help you with activating and progressing the lease deal. That then means a better negotiation.
Here is an interesting leasing based question for you. Can you believe what at tenant tells you about the property lease requirements that they have? Perhaps not totally, however you can ‘read between the lines’ of what the tenant is saying and doing, and get to some of the real facts of what is happening in their business world.
A good outcome?
A good lease negotiation is generally a result of the leasing broker informing the parties to the deal, then discussing, listening, and seeing through the challenges. Though all stages of the inquiry, inspection, and meeting process you can find out more of the tenant’s requirements and priorities.
So what really goes on in a lease negotiation?
The balance of any lease negotiation will shift and change based on just how much available space may be in the property market at any point in time; you have to prepare for that variation. It directly follows that you should be prepared for any and all of these tenant ‘delay’ tactics:
Asking the landlord to do some internal fit-out works
Seeking early access to the premises before documents are signed
Fit Out approvals slowing
Plans of the fit-out not available
There are many variations as to what a tenant will be looking to do with a lease negotiation. As the professional, you are to guide the process and negotiate through these barriers and many more. Control and research are the keys to any successful commercial property lease negotiation.
Look for the vacant properties in your local area, you will find leverage in working for those landlords. They will be highly motivated to fill the vacancy and listen to you as you make recommendations about property market conditions.
In this audio I talk about how you can do more with vacancies and how your professional services should be positioned within that. One other special note here is that your database in leasing will give you massive momentum if you structure it and grow it over time. In the audio program I talk about how you can use that to build leasing leverage.
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