Easy Game Plan for Commercial Leasing Agents
Today, there are many opportunities to lease commercial, industrial, or retail property; however, the strategy for finding them is very personal and should be taken at the agent level. Conversations with tenants and landlords will lead to leasing opportunities.
Do you want more transactional leasing business in your area? There is a straightforward solution. Every day, hold numerous discussions with groups of landlords and tenants. Create your day-to-day operational systems around that.
Change and Churn in Leasing
Why is there so much leasing activity nowadays? Changes occur in the business community, economic pressure points, and the real estate market. Taking advantage of that change is the best way to find vacancies and lease transactions with property types and locations.
That is where the leasing agent can consistently and continuously find new business. Change is good in commercial investment property because the resulting property pressures can provide you with many lease listing opportunities.
Tenants and Landlords Need You
Leasing agents should be prepared to develop activities that connect them with landlords and tenants daily. Landlords are ideal clients because they will likely have multiple vacancies to deal with over time.
Landlords do not want income reductions due to vacancies. So, what are your leasing solutions, and can you provide an objective point of differentiation to the landlord clients you serve?
When looking at any investment property, look forward to some 12 to 18 months regarding the tenancy mix review. That will help you see future leasing needs and tenant change opportunities. Find new tenants to improve the tenant mix and the market rental returns.
Strategies for Leasing More Premises
Landlords like a confident leasing agent that has a ‘plan’ to find the right targeted tenants. So think about these questions and strategies:
- TENANT SELECTION: Some tenants are better than others, so it is not just a matter of filling a vacancy with a new tenant business owner. It is a matter of finding the best tenant that suits the property, the target market, and the longer-term investment targets of the landlord. Target marketing is a big part of leasing premises today. Ensure that you approach every vacancy with ‘target marketing’ as a basic approach, and then explain that to the landlord and owner of the property.
- LEASE TERMS AND CONDITIONS: Encourage a ‘standard lease’ document for the landlord that considers the property type, the property design, the rentals required for the investment, and the locational site and precinct pressures. A standard lease will help you shape the overall lease transaction to a more positive outcome for the landlord client.
- COMMENCING RENT: Market rentals constantly change as the property market shifts bias from tenants to landlords. The tendency will also move based on the property type in the location. Market rentals do not always escalate, and they can sometimes decline. The question to consider today is where the property market is when it comes to leasing premises in the categories of property.
- INCENTIVES ON OFFER: Lease incentives are something tenants ask for, which landlords should be prepared for. The types of incentives that can be on offer will vary based on the property, the improvements, the vacancy, the lease length, the rentals to be paid, and the capabilities of the landlord in offering incentives. Lease incentives can be cash, rent-free periods, rent reduction, the installation of a fit-out, and or the provision of fit-out monies. So, what incentives should you offer for the property types in your location today?
Base Plan for Leasing
So these four factors serve as the “base plan” for developing a game plan for leasing vacant property. Every lease situation should be approached in this manner.
When you’ve decided on a strategy, these factors will help you attract more tenants and inquiries and lease the property faster.
