When you manage or lease a commercial property you should be reporting to the landlord (your client) regularly to tell them about the local property market and the results of recent marketing efforts and inspections.
A client landlord that is fully briefed about the local property market is more likely to negotiate realistically when a tenant is found for the property. That is where regular reports to a landlord will help you in moving a lease deal forward. Good communication builds trust with the client. That is a process that is keenly needed in today’s property market.
Tenants are Selective
It is a fact that most tenants today are very selective to make a lease deal and slow to negotiate. The tenants that we work with understand the property market and the trends of rents and vacancies.
So how can you report to the landlord to get the best results? Ultimately you want the client to be cooperative and realistic about asking rents and lease terms. Most landlords will know little about these things without a comprehensive marketing report and update of competing properties.
Here are some proven reporting strategies to use with your clients in leasing premises.
- After every property inspection, prepare a comment sheet that summarises the outcome with the prospective tenants. Use the tenant’s comments in the report, so the ‘third party’ perspective helps your situation with the client.
- On a weekly basis review the competing properties in the local area and tell the client about those properties and what has been changing in their marketing campaigns. It is likely that you will have quite a few properties in the local area that are competition for tenants against your listing. Check them out and give the client a comprehensive understanding about what those listings are like and how they are tracking as to enquiry.
- Do a SWOT analysis of quality properties in the area. Include factors that relate to improvements, services, amenities, car parking, vacancy profile, and tenant mix.
- Do some regular market rent assessments locally
that can be relevant to differing locations and property types. Accurate information will help you with listings and sales pitches with landlords and tenants.
- Give the client updates on incentives in the local area when it comes to differing property types and locations.
- Tell the client what has been happening with tenant enquiry for differing properties today. Tenant enquiry will vary from property to property and season to season. It is interesting to track the numbers as part of your local market updates.
- Check out the time on market for quality properties versus older and more average properties. Get details of rents in both cases. Also compare the listing types of exclusive versus open listings. You will soon see differences when it comes to listing types and negotiated leases.
These things will help you with your clients as they seek to list and lease their commercial property. Today we need realism when it comes to listing and marketing of quality properties. It really does not matter what the starting rent is on a lease but it does matter where the lease is heading in market rents over the lease term. A good lease builds value in a property for the landlord.