In commercial or retail real estate today, the leasing opportunities remain active and diverse. Quality properties will be of greater attraction to most tenants due to quality of improvements and location. Services and amenities will also have something to do with the needs and choices of tenants as they look to relocate. As agents we should focus on those ‘better quality’ properties.
It is the poorly maintained and older properties that are difficult to lease. If a landlord has not maintained a property, it is in ‘softer’ markets where the vacancy factor will rise. Don’t specialise in low quality listings. They can waste a lot of your time.
Income and Commission Growth
If you are an agent that works on a commission based salary, the income that you can get from leasing will complement your sales based income quite well. It is also a known fact that leasing activity can lead to a sales listing or appointment with a client over time. A lease or tenant ‘need’ today can be a property sale or purchase situation in the future.
Top agents tend to be very versatile across sales and leasing; they understand how to make lease terms and conditions improve the property performance financially and physically. That’s why landlords really like working with them.
In saying all of this, there are some rules to the process. They can help you get tenant market share:
- List the better quality properties as they will give you more enquiries from larger and substantial tenants.
- List properties that are well located in areas where tenants like to operate their business
- Keep in contact with the local business community as to the leasing needs and business adjustments.
- Property changes locally with development plans and zoning will give you a leasing opportunity.
- As a general rule, you will find that larger companies and corporate groups are easier to work with than smaller individual tenants.
- Smaller leases are just as hard if not more complex to negotiate when compared to the larger properties with bigger vacancies.
- Check out the larger properties locally that contain higher quality tenants. Talk to those tenants and find out when their leases are to expire. Keep in close contact with them for the time that negotiations can be advanced for any property relocation.
To build a good market share as an agent with all of this, you really do need to know how to package rents, incentives, rent reviews, lease options, and outgoings recoveries. All of these factors will have an impact on property performance.