Key Facts for Commercial Property Leasing Experts

The leasing of commercial and retail property is a job for experts.  If you are making the most of your leasing opportunities in your local property market as a real estate agent, listings and commissions should be easy to attract. 

That being said you do need tenants and landlords to work with.  Contacts are everything in our industry. Create separate lists of tenants, business owners, and landlords as you prospect for new business.

It is one thing to know all the details about the market; it is another to have the contacts that will help you put the deals together.

Property Leasing Facts Checklist

When we work with tenants or potential tenants, we must get all the facts about their property needs and lease requirements from them. 

Here is a checklist of some of the bigger issues to help you with that:

1: Know the Person and their Focus

Just who you are talking with is perhaps the most important fact of the connection.  Get all the person’s details and contact information first.  If you are taking an enquiry across the telephone, it is even more important to qualify the person and have all their property needs information.  This is before you give out too much listing information. 

Do not give out critical information if you doubt who you are talking with.  It is not unusual for another agent to make a call and ‘pose’ as a tenant or person enquiring.

2: Size, Improvements, and full property detail

Property size will be necessary, along with fitout design and layout. Understand the property’s areas and zones both inside and outside the premises. Tenant requirements may include access, car parking, staff facilities, signage, and storage. Get plans of the property to help with that.

3: Permitted Use and legal use

Permitted use will be relative to the tenant, the improvements, and the property zoning or legal usage. Getting the local zoning and development plans may be necessary to see what is possible in that location. Exploring the legal use of the property is also one thing to do; the improvements need to match the use and demand that the tenant will place on the property.

4: Location to Customers and end markets

Location will be necessary to the tenant’s business and connection with customers and clients. It may also require access to transport routes, airports, seaports, or railheads. Ask questions to get all the correct facts.

5: Full appraisal of improvements

Improvements will include office, warehouse, or showroom configurations. Each should have an area of occupancy. Exactly what does the tenant need when it comes to improvements?

6: Services and amenities

Services and amenities needs could be quite normal from a tenant perspective, although it pays to ask questions if there are special factors to consider.

7: Signage Potential and Placement

Signage on a property is important to most businesses considering taking a lease. Review the property to see where signs could be placed and how those placements comply with local council and municipal signage regulations. The tenant may need special signage approvals.

8: Fitout Factors and layout

Fit-out questions should be asked. If the property has an existing fit-out installed, determine what alterations may be required by the tenant for any lease to be taken out. Approvals will be required for premises alteration, as will code compliances for safety and building occupancy. Just who will pay for this extra work?

9: Inspect Premises and Document All

It is important to inspect the premises to ensure they are leased comprehensively before, during, and after occupancy. You will see issues that need rectification and remediation. Recording those issues will be necessary to discuss who pays for what. Take photos to provide a record of tenancy, property, and occupancy.

Aging Properties require a strategy

Be very careful when leasing older properties. Ask questions about outgoings, energy, risk, health, and environmental issues. If you have any doubts, get an expert opinion. 

Many landlords do not know all of the total occupancy issues their property presents to tenants and business owners. The local council or municipality may have orders or notices on the property that must be satisfied before occupancy is created.

Life is a lot easier when you completely understand the tenant and the landlord. Over time, you can create a great checklist of leasing facts and questions that apply to your location and property type or speciality.