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:
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.
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.
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.
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.
In commercial real estate brokerage I frequently get asked about how new agents can find the right people and clients to serve in their town or city. The question is so common that I just wonder why those salespeople do not know the obvious or take so long to understand it. The industry is similar to many others; diligent focus and work is required at a personal level to find new business, and when that happens, results occur.
The new business is always out there to attract and convert across sales, leasing, and property management. Yes, I know it takes time, but the diligence and actions of ‘top agents’ always shines through when it comes to finding the best clients, properties, and commissions.
It is my firm belief that you cannot be a top agent without some personal plan of prospecting action that you implement every day and refine over time. Regular actions create habits, and habits in our business change listing conversions and commissions.
Let’s say you are looking at a property for a client for the first time. Here are some ideas and bigger income matters to look into as part of assessing a commercial property investment and its performance:
Market rental – Understand the levels of market rent for the property type and the location. Compare those figures to your client’s property. Have due regard for property improvements and age.
Rental income recovery – If you look at a group of tenants in a property, you can see many different rental recoveries. Make sure that all rental recovery methods are up to date particularly with rent reviews, options, and percentage or base rents.
Incentives – If incentives have been given to a tenant for any particular reason, check out that process. Are the incentives accurate and up to date? When do the incentives stop?
Arrears minimization – In larger properties today there will be arrears issues to handle. Work closely with tenants to ensure that rents and arrears do not get out of balance or become too large.
Licences for special areas – Some tenants can be given the use and or access to special areas outside of their demised premises but in the same building. The other areas will still attract a rent; the risk of that extra space(s) use will also require management under a lease or licence document. The most common licences today in commercial investment properties will usually be that for storage, car parking, antennas, or cabling. All of those things should be documented in a licence for which a reasonable rent is charged.
Electricity recoveries – If the tenant is supplied with electricity from the building grid then the landlord will have a recovery process underway. Look for the recovery methods and understand how they occur.
Cleaning and common area recoveries – If the tenant is using common areas or is having their premises cleaned as part of occupation then the recoveries will be relevant; they should also be accurate so check out the numbers and processes that apply.
Signage rents – A tenant related sign should incur rent. Signage rent is a valuable third income stream in a commercial property.
Car parking – Tenants should pay for car parking and that rental should be aligned to the location and property type. If the building and car parking is in the center of the city, then a premium for onsite parking should apply.
Outgoings recoveries – Depending on the rental type, outgoings will be a part of tenant charges and recoveries. Compare the outgoings recoveries by location and property type so you know that the averages apply. A building with high outgoings will be harder to lease or retain tenants.
So there are many things to check out as part of assessing property investment performance and income optimization. Are you ready to ask the right questions?
In this property market there are many things to consider. In this podcast I have covered 3 issues that are so common across many brokerages. Here they are:
How to structure a commercial real estate property management budget in a large building
How to remove negativity from the sales team
What you should look for when it comes to results and team performance this year
We are 7 months into the calendar year. Now is the time to get things really moving so the end of the year finishes with good results. It doesn’t matter if you work in property sales, leasing or property management, now is a good time to consider and plan important actions that will create results over the next 6 months. This training audio will help:
As an agent or a broker in commercial real estate today, the current events in the market will be sources of substantial leverage and opportunity when it comes to a future sale or a lease situation. You can also find plenty of property management opportunities within a sales or leasing transaction.
The message here is quite clear for the astute agent or broker. Look for the opportunities within the market based on industry trends and business churn.
The property market moves in cycles and in the case of commercial property it is the local business or economic cycle that impacts the decisions of property investors, business owners, and tenants. What you can do here is built leverage and action from certain activities in your market. Here are some ideas to help:
Inquiries – Any property inquiry coming in to your office from the marketing of listings will allow you to create a conversation, qualify the party, and potentially find out about their new property needs and changes. Understand the motivation of the person making the inquiry, and the timing of their decisions. It is likely that they will be talking to other agents locally, so be prepared for quoting other properties where appropriate that may suit their inquiry.
Quality listings – When you focus on quality listings you will generally have many more direct inquiries coming in to you from each marketing process. Understand what the factors of attraction are when it comes to tenants and buyers today. Fully qualify the people that you talk to and then itemize or short list property requirements. You will soon know how to package a listing and find the right properties for today’s market.
Inspections – Every property inspection allows you to connect completely and thoroughly with a potential tenant or property buyer. If the subject property inspected doesn’t suit the inquiring party, add some other property inspections to the list. Most buyers and tenants will purchase or lease property from within the local area. That is because they understand the location, the values, the rentals, and the opportunity. Track your inspection activities within your database. Keep in contact with inspecting parties for the long term.
Methods of sale or lease – There are differences in the market when it comes to the successful methods of sale or the methods of lease. Understand the factors that work in your local area with buyers or tenants as the case may be. A timed method of sale such as an auction can put some urgency in the property decision process. A quality listing taken to the market through the auction process will usually create a lot of interest. From one auction marketing campaign you can create a substantial database of qualified buyers.
Offers – An offer to purchase or lease may or may not be successful in today’s property market; a lot depends on the client you are working for and their impressions of the prevailing market conditions. Understand the offer limitations and the negotiation objectives of the people that you are working with; negotiation skills will help you in this process. You can quote other properties to those people that may have been unsuccessful in any property offer.
Referrals – From any successful listing, be it in sales or leasing, you will find further new business in asking for a referral. Be prepared to ask the right referral questions at the right time; understand that most business people and investment property owners have relationships with others that can lead to more opportunity.
So the message here is quite clear and most particularly that simple issues and events in commercial property today can give you some leverage and lead to other opportunities in new business over time. Be prepared to work with the right people and see the opportunities.
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