How to Qualify Your Commercial Real Estate Tenants Correctly
In commercial real estate today, the tenants that approach you enquiring for space need to be fully qualified in many different ways. That qualification should be done before you spend too much time quoting properties and holding inspections.
Some tenants really do not understand the local property market, levels of rental, and the types of property available. You can waste a lot of time with some tenants when they are not qualified and categorised.
Ask plenty of questions as part of the tenant qualification process. Depending on property type, a checklist of questions can help you greatly.
Qualifying Questions
So let’s look at some examples. Consider the following questions:
- What does the tenant know about the local property market when it comes to current levels of rental?
- What services and amenities do they need?
- How much car parking is required?
- What factors of staff and customer access will impact their property choices?
- What will be the permitted use for the property? The permitted use will need to match into the zoning for the property.
- How long have they been looking for another property? They may very well have already seen some of the properties you have on your books.
- On what basis do they require relocation? There may be a central issue behind the property move that will give you valuable information.
- What is their business history? You may need to talk to the existing property owner or property manager.
- Are they coming from another location? Their current location will give you valuable information regards property needs and use.
- Are you talking to the decision maker involved in the ultimate property choice and decision?
- How can you contact these tenants again when it comes to suitable properties and leasing negotiations?
- Is there a timing factor to be considered in changing properties?
- How long will they need to occupy?
- Have they been talking to other agents locally, and on that basis have they inspected other properties?
- What level and type of improvements do they require in changing properties?
- If the tenant could create a shortlist of must have requirements, what would be on that list?
- What is their budget when it comes to rentals and outgoings?
- What level of fit out will they require in the new location?
- Do they have particular locational requirements involving customers, staff, and business needs?
Questions like these will help you relate to the ideal property and the targeted locations. All of these things can be sorted through well before you spend time in meetings and inspections. Some of these questions will lead you to make particular choices in properties to quote. Only spend time with tenants when you fully understand what they want and on what basis that need has occurred.
