Many landlords are too focused on income and rent growth as part of owning a commercial property. The really important issue in this property market is to get a tenant that can bring stability to a property.
At a time when vacancies are generally many in number, the number of properties that the tenants have to choose from is quite high. That is why most tenants take their time when it comes to finding the right property to rent and then negotiating a lease. Tenants today are looking for the right mixture of occupancy which will normally be a combination of the following:
- Lower Rental start
- Incentives at lease start to encourage occupancy
- Modern attractive premises
- Realistically lower outgoings recoveries for the property type
- Options for further term of occupancy if they need it
- Rent reviews that are not aggressively high
- Property improvements that are matched to their needs and also well maintained by the landlord
- Services and amenities that suit the tenants business
- A landlord that maintains their property well
- Flexible property use that is convenient for staff and customers to the premises
Just about every tenant that is looking for premises to move into today will have a selection of properties to choose from; the right property will be that which achieves a balance of all of these issues mentioned.
I go back to the point that landlords are too focused on high rent when leasing. They should be focused on getting a tenant that is good for a property. After that point the lease can be structured to pick up reasonable market rents over the coming years.
As agents it is up to us to help landlords see the way forward to structuring a lease that is reasonable and feasible for the medium to long term. Current market information about space supply and demand will also help the process.
It is in property markets like that which we have today where our database of prospective tenants becomes really important. Every listing that we get on our books can and should be quoted personally into that database. I say personally because today’s property market is built on personal contact and frequent contact with the right people.
If you are struggling with commissions and listings today as a commercial real estate agent, have a long and hard look at your database. Is it up to date? Is it accurate? Can it be better?
Relationships can and should be strengthened in this market; that’s how you get more business and better income. Get back in contact with your property people and prospects; help them to understand exactly how they can do the lease deals today. We are the solution to many challenges of property sale, leasing, and property management. Market yourself as the expert that you are.