Showing the commercial office property to a tenant is a special skill. If the inspection is held correctly you can position yourself favourably for a leasing negotiation or ultimately an offer.
After doing many of these real estate leasing inspections personally over the years and also seeing many agents take inspections through premises, I have developed this inspection strategy. Today I want to share that with you.
Inspection Checklist for Leasing Office Property
Start at the very beginning of any lease discussion with the essential lease and business information. Qualify the tenant fully at the very start so you know as much as possible about their existing premises, their business, and the operational or premises expectations they may have of making a change of location.
Determine the leasing budget that they have for rent and sundry costs. Is that budget realistic for the space and premises they are to look at? Some tenants have little idea about local rents and leasing conditions.
Do they have any special requirements of occupancy such as storage, car parking, security, access, signage, or the use of the premises? Also question them about the fitout requirements they may have.
Many businesses today operate extended hours and that will have an impact on property use, costs, and wear and tear.
Property Facts About Services
From the previous points, you can then focus on the property or groups of properties you may choose to show the tenant. With every suitable property, consider the following questions.
What demands will they put on air conditioning, lighting, security, and the factors of the fitout? For example, a ‘call centre’ will operate long hours and that will impact wear and tear as well as operational costs.
Consider the elements of the lease that are important to the landlord and reasonable to seek with the tenant, given the market conditions.
Start your deeper discussions with the tenant by reviewing the budget to rent, then the lease duration, rent reviews, options, and risk-related terms and conditions. From those factors, you can inspect the premises using these tools or tactics.
- A plan of the premises
- Services and amenities detail
- Fit out plans
- Floor layouts
- Make good requirements
- Available incentives
When you reach the end of the inspection go through the points of concern and the points of understanding that the tenant has. Compare leasing facts and requirements. You can even do a SWOT analysis on the particular premises for the tenant.
This will show the tenant that you completely understand how you can help them with relative premises. One of the strategies in this process is to restate what you believe the tenant is looking for or concerned about.
If the tenant cannot give you a definitive answer from the properties that you have inspected, arrange another meeting or connection. Make an appointment with the tenant to catch up again in the next 48 hours and go through matters from the inspection.