In this commercial property market there are plenty of leasing opportunities around for us as agents to work on. When there are lots of vacancies, you have some good stock to choose from. Pitching and presenting for those listings then becomes a really important part of our craft and real estate profession.
Quality stock should be your focus today given that you will always get better enquiry for quality commercial or retail premises and listings. Quality leasing stock has to be controlled by exclusive listings. Top agents have more exclusive listings than anything else.
Some agents will say that it’s too hard for them to get exclusive listings today because the property owners will not agree to them; I will then say that the agent is not good enough to sell their services at a high level. To get quality listings you must sell your experience and relevance comprehensively.
When the landlord for a property really knows that you are a top agent, the exclusive listing decision is not hard. If they want a top agent, then they accept the terms of the appointment. It all comes down to the quality and relevance of your listing pitch and presentation.
The rules for this market are quite easy to understand. When you control the best listings in the area, you will have more enquiries coming your way. The commercial real estate agents that are struggling today do not have the good listings. You can have plenty of listings, but you must have the quality listings and they must be controlled stock.
So let’s say that you have picked up a good listing with a landlord. It is a controlled listing for leasing and you have the ability to market it comprehensively in the local area. Here are some key facts that should be merged into your quality professional service for the client that you act for.
- Rental profiles should be recommended based on evidence from the local property market. You do not need to be the most expensive rent in the local area. You need to be competitive and attractive to the tenants that are looking around.
- Market rents will be impacted by supply and demand. Tell the client what is going on when it comes to new and current properties for lease in the current market. Give the landlord a profile of market trends and competing properties locally. Most landlords do not know what is going on in the local area.
- Outgoings will have relevance to the leasing strategy that you adopt. Net and gross rents should be considered based on the property type and the expectations of tenants. Somewhere in the lease deal will be your ability to recover outgoings.
- Lease activity and enquiries will change throughout the year. Give the landlord regular updates of where the enquiry is coming from and what those tenants are looking for.
- Vacancies will have an impact on market rental. Vacancies should be assessed on a basis of property type and age. Newer properties will generally lease faster although vacancies in the local area are likely to hold back market rent.
- Tenancy mix, rent reviews, and options are all strategic factors of renting a commercial or retail property. It is not just about what the tenant wants today; it’s about what is good for the property and what the landlord is willing to give in today’s property market. The starting rent is one thing, but the increase in rent over the lease term is really important to position the property for capital gain and better value. Look at the entire lease package and structure it to help the landlord’s position.
Most landlords need help in understanding the market and just how to match their vacancy to the prevailing market conditions. Provide the right information and recommendations.