When your clients are property investors, you will quickly understand the importance of knowing lots of tenants locally. They are critical to the leasing services that you provide. In fact, the greater the number of tenants that you know, the more value you are to the investors and landlords in your property market. That can only mean one thing; lots of leasing opportunities.
Essential Property Relationships
Here are the important relationships to remember:
- Tenants help you resolve vacancies in assets
- Lower vacancy rates improve property performance
- Improved property performance makes the property more attractive in a future sale
- Sale listings evolve from quality investment properties and successful investors
I think you can see where tenant leasing sits in the investment cycle? It is foundational to the overall property and it performance. That’s your market!
If you are a property specialist working with investors, you should be covering your services across leasing, sales, and property management. Get to know how those processes work and how a property can be improved in each process.
So the idea here is that you can get to know lots of tenants locally and market your commercial, retail, and industrial property investment services around that. Here are some clever ideas to help you find and connect with more good quality tenants so you can build your database accordingly:
- Building focus – Certain buildings locally will produce greater levels of inquiry and tenancy change. Delve into the tenancy mix with all of the good quality local buildings. Determine when the tenants will get to the next leasing decision or lease expiry. Focus your cold calling it fits into the tenancy mix with these targeted buildings.
- Location focus – Split your tenant contact processes into locations, streets, precincts, and suburbs. As part of that process, you can identify when local area changes will activate tenancy churn and opportunity.
- Business categories – Work your tenancy prospecting activities in certain business categories (eg Mining, Legal, Doctors, Medical, etc.). You can then logically and thoroughly use the business telephone book as a source of contacts in cold calling.
- Expanding businesses – Watch the local newspapers and the media for information relating to business change and growth. Any expanding and changing company or corporation will very likely need leasing services and or property relocation services. You can also work as a tenancy advocate within that category of activity.
- Contracting businesses – As certain market places change you will find that business segments will be contracting with the economy. A good example here would be the impact of the Internet on the retail property segments and the larger shopping centres. Some tenants require less space and that is where you can provide specialized services.
- Factors of Supply and Demand – Keep a close eye on the upcoming property developments for your town or city. Any new property developments in the planning phase will create plenty of churn and opportunity with tenant relocation in the future.
The message here is quite simple. You can delve into your local property market and get to know your tenancy churn factors and change. A buoyant property market providing plenty of leasing activity will also provide plenty of sales opportunities in the future.
Your job is to get to know the tenants and landlords closely across your location so that property leasing solutions can be provided comprehensively at the right time and in the right way. Provide certain specialized leasing services for the property types and categories’ that you understand. In that way you are of real value to all concerned in commercial real estate brokerage.