Help with the client’s property challenges at the earliest stages. It is a simple idea, but it is so important in our commercial property industry. Stay ahead of the client’s property situations and choices. Help them see the next property choice before they move to it. Be fully aware of the client’s property portfolio and their challenges. (NB – you can get plenty of client service tips for commercial real estate brokerage right here in Snapshot)
It should be said here that you can’t do this ‘deep’ property analysis with all the clients that you know, as there is too much to review, and track. You can however comprehensively cover your VIP client list in this way.
Know your VIP’s and their property challenges and stay with the VIP issues over the months and years. Be ready for the client change, challenge, or shift.
VIP Clients Please!
Here are some of the ways that I would work a VIP client and their property facts over time:
- PORTFOLIO: See what properties they have from a portfolio perspective now. Assess the portfolio for risk and opportunity. Risk assessments will normally include vacancy factors, tenant volatility, and property redundancy.
- SUPPLY: Look at the supply and demand factors for the client’s property type, and then see how that impact could change the investment for the client. The quality of the property will have a lot to do with supply and demand. The precinct will also have an impact.
- MARKET TRENDS: Market rents and prices should always be watched in the precincts and property types. You can also do an analysis of those trends over the last couple of years to see where redevelopment and refurbishment opportunities may exist.
- LEASES AND LICENCES: Lease documentation should be looked at individually where possible. There will be differences in the terms and conditions of many leases, and some of those differences will impact the future of the asset from an investment point of view. Wherever possible, read the leases and relate those documents to the physical tenant mix.
- TENANT CLUSTERS AND MIX FACTORS: Tenant mix changes happen through the year. If the client has a property with multiple tenants, then keep a close watch on the ‘cluster’ factors of tenants in different sections of the property. Ideally, you are wanting to reduce the chance of multiple vacancies in the same location. Early lease negotiation can get around those challenges.
- ZONING: Highest and best use indicators will change in a region as the zoning regulations change per precinct and per property. Keep in close contact with the office of planning and development in your location. Track the upcoming changes; act on them. Older properties will reach a new stage of change, and a well-timed renovation or redevelopment activity can put the property into a new life-cycle. You may also be able to pick up some project leasing or sales out of those changes. Work the lifecycles of the client’s property.
So the idea here will all of these things is that you can do more with some of your special clients. Professional service and constant contact will help you be ready to work on the property challenges when they happen.