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Purpose Built Office Leasing Tactics and Strategies for Agents

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The client or the owner of a commercial office building wants to know that you have a definite plan and a ‘toolbox’ of strategies that you can apply to their leasing challenge.  The ‘generic’ approach to office leasing doesn’t work anymore.  You are the leasing ‘strategist’.

Be more specific with your leasing engagements with properties and clients.  Put the client’s property leasing requirement firmly into the property market in your location and build your leasing stories and tactics around that.

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Leasing Course for Brokers and Agents

Asking the Right Leasing Questions

There is no ‘one fits all’ approach to finding tenants and filling any vacancies in office leasing.  Be specific when you try to help your landlord clients with their leasing challenge; put some ‘purpose’ into your leasing plan and provide ‘clear strategies’.   Here are some ways you can do that:

  1. Know the major buildings locally – As part of any leasing project, be aware of the other buildings in the location that could have an impact on your client’s property and the known or upcoming vacancies.  There will need to be a ‘point of difference’ to help your property with its leasing requirements stand out as relevant and valuable to tenants and local businesses.  How can you do that?
  2. Target tenants and businesses – Certain tenant types will match your vacancies in your listed property.  The marketing of the vacancies then becomes more direct and specific.  Build a plan of specific marketing to reach out into the best tenants and businesses that you think would be good candidates to occupy your listed property.
  3. Risk reduction is important in what you do – This means that you can and should be part of the property improvement plan by providing better tenants and creating quality leases.  How can you do that? The answer will help you engage with your clients with their investment requirements and strategies.
  4. Vacancy reduction is normally achieved through tenant attraction and retention – Every exclusive leasing appointment should have a tenant attraction and retention plan.  That will involve some specific rents and lease offerings with existing tenants.  Each year those plans can be modified as part of the
  5. Incentives and benchmark rentals should be set – The property market will change, and with that change will come variations with supply and demand impacting your lease listings.  The enquiry that you want or get with your property listing will be reflected from the rents you are asking for, and incentives that you are providing.  Understand what other tenants are being offered currently in the local property market, and then package your property and its vacancies to have some advantage in rental and or incentive offerings.  Make your property the ‘best value’ in office leasing locally.  It doesn’t matter too much where you start with rentals, but it does matter where things finish.  Your rent review strategies will be a useful way of improving things from the starting rent.
  6. What are the improvements and fit-outs possiblities to apply? – Prepare your vacancies for leasing by considering the improvements, the services and amenities, and the fitout configurations.  The size of the floor plates will also have an impact on fitout design.

These office leasing strategies will help you build some purpose and momentum into your professional leasing services for your clients.  Be comprehensive in how you build a lease strategy for your clients and their property vacancies.  Be all-inclusive in how you look at attracting potential tenants to the asset and its vacancies.  These are the qualities of a professional leasing agent in office property today.

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3 Tips for Leasing Commercial Property Today

Commercial Office Building Leasing
Lease more commercial buildings the right way. Use a checklist approach.

When it comes to leasing commercial property you really do need to know what is going on in the local property market.  In only this way can you match your marketing activities to the levels of enquiry that currently exist.

Three tips to help you with the leasing process centre on market evidence and market activity.  Here they are:

1)      Assess the levels of net and gross rent for comparable properties nearby before you start your leasing process.  Your property will need to have asking rentals that are similar to the other properties because the tenants that you attract through marketing will already know what the rental levels are in the market today.  The differences between net and gross rent will also be of interest to tenants and centre on the levels of outgoings that apply to the asset.  Most tenants will be concerned regards any extra rental payments that need to be made beyond the base rent.  This is where the levels of outgoings can frustrate the leasing process.  Make sure that your outgoings are in parity to properties of a similar type nearby.  If they are an extra payment to be made by the tenants, ensure that the outgoings are realistically structured and charged.

2)      Choose a lease format that covers all the activities and uses of the property.  The use of generic leases today is far too common.  In most cases generic leases are only relevant on the most basic of property (such as an industrial shed).  It is interesting to note that many landlords take the generic lease process because it is way cheaper than a specific lease; when things go wrong with the property or tenant they then have troubles in solving issues given that the lease is just too basic.  The message here is for the lease to be drawn up by a good commercial property experienced solicitor.

3)      Get a good rental guarantee to boost your landlord’s position and protection in the case of lease default.  Tenant default is a common problem today, and the traditional ‘Directors Guarantee’ is not much value in the scheme of things.  The landlord must be able to get easily their hands on ‘real money’ if the tenant defaults; that will normally be only through a bank guarantee or cash bond.  As to the amount of what should be asked for and held as part of this process, the answer is usually ‘the most you can get’.  That should be between 3 and 6 months rental (all types of rent including outgoings and any taxes paid) depending on just how difficult the property could be in the reletting process.

There is no doubt that the leasing process and activity is high in many locations today.  When sales opportunity slows, the leasing activity tends to lift.  Good agents can handle leasing as well as sales and they adjust their activities depending on what the property market requires.

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