In commercial and retail real estate, a leasing slump can be a challenge. Invariably in a leasing slump you will find an abundance of vacant tenancies, and little enquiry coming your way. Deals are slower and harder to put together (or so it seems).
There is a good thing that comes of all this leasing market downturn. It is that we will have plenty of stock to work with. What you should be doing as a real estate agent in a slower leasing market, is to find and then sign up all the quality local property listings onto ‘exclusive’ listing appointments. When you control the better listings, you control the better enquiry. That is how you put deals together in a tougher market.
If things are slow or tough for you now in leasing commercial or retail property, take a long look at your listing stock. Ask yourself these questions:
- Do you control the listing or is it an ‘open listing’? Open listings are a waste of time and will convert at less frequency to successful transactions.
- Has the property owner put in some ‘marketing funds’ to help you spread the message about the property today? At the very least you should have a very good signboard on the property, a priority listing on the internet, and a direct marketing campaign moving with all local businesses in the area.
- Local area marketing is really important in leasing any property. It is best to set a defined prospecting area and tenant profile before you start marketing any listing on your books. Set some guidelines about marketing strategy and reach. Know the media and methods you are using and then monitor the results weekly.
- Think ‘outside the square’ when it comes to tenant use of the property and the types of tenants that could be suited to the property. Make a list of groups that you can approach personally about the property and then start the process of personal contact. Yes, I know this is time consuming but that is why we have ‘exclusive listings’. You can devote the time and effort to ‘exclusive listings’. ‘Openly’ listed properties are a factor of luck. If you have them on your books, put a sign on the property and don’t do anything else. If the sign brings in enquiry, then act on it.
- Tenants are the lifeblood of the business and investment property industry. If you are in a ‘leasing slump’ today, you probably do not have enough tenants on your books. Take a good look at your listing and prospecting efforts. Start working on your prospecting to get more enquiries back into your database.
A ‘slump’ in commercial real estate is a reason to develop more focus and take more action. When you consistently take more action you will start to find things that you can list or close a lease on. Top agents are doing more deals today because there are fewer agents around to take the stock. Isn’t that a good thing?
You can get more tips for leasing in our Commercial Real Estate Agents Newsletter right here.