In commercial real estate project leasing you do need to understand the objectives of the project from the client perspective, and report accordingly to the client in an effective and efficient way. Help them see the shifts in property enquiry, and adjust the project for maximum enquiry.
Over the duration of a large leasing project, the property market will change a number of times, as will the levels and the rate of enquiry from tenants; the project asking rents, incentives, and lease terms will have to change accordingly.
Successful leasing outcomes are achieved through shifts in marketing, inspecting, and negotiating; you can only do that when the client understands and adjusts to market conditions.
With some commercial leasing projects the marketing of the property can be quite complex with many stages to the development ongoing release of vacant premises to the market. On a weekly basis you should report to the client to help them fully understand the status of enquiry and the opportunities of future leasing. If you have existing tenants in the property being leased, then you will need a tenant retention plan to integrate to the project leasing process.
Here are some ideas to help you with reporting to your client as part of the project leasing strategy:
- Market rentals – The levels of rent will change from time to time in the location, the town or the city. Market rentals will always be impacted by the supply and demand for property locally. On a monthly basis it will be wise to provide the client with an assessment of market rentals based on the current levels of enquiry. Other properties locally may also help you with an understanding of comparable rents and vacancy levels.
- Vacancy rates – The number of properties vacant in the local area will impact enquiry. Each vacant property will need to be assessed and watched in case it has an impact on your project. Understand the rents and the incentives that other property owners are using. Be prepared to shift your leasing parameters to compete more efficiently or economically. Attracting tenants is really what it is all about.
- Target market – Who are the tenants that you should be attracting to the leasing project? How effective is your marketing in attracting them? Don’t be afraid to adjust your marketing if there are problems with the rate of enquiry.
- Inspection feedback – The feedback from inspections should be given to the client. That will be the number of inspections and the things that were said by inspecting parties. In reporting to the client on these things you can condition the client to the existing market.
- Marketing results – Every project leasing campaign will have factors of media choice and timing. Each day and each week the enquiry coming back to you from the marketing should be tracked; in that way you can adjust promotional efforts if necessary.
- Lease terms offered – Understand the standard leasing conditions that will be offered to potential tenants. You will need a range of alternatives in rent reviews, rent amounts, options, and incentives; those alternatives will allow you to negotiate within the ranges that the landlord client has approved.
- Lease documentation – In every project, the standard lease approved by the client should be ready to be used. That lease can be varied depending on the requirements of the parties and the single negotiation. Make sure that your client has the appropriate lease documentation ready to use with new tenants as they negotiate. Understand that lease comprehensively so you can move to offer and acceptance quickly and efficiently.
From these things you can see why the leasing of your project is a complex issue and how the reporting process back to the client will help with negotiations and results.