Commercial real estate leasing is a specialised process. You can sell your services comprehensively and hence your brokerage fees can increase. There are many things that you can do in ‘leasing’ for your clients and prospects. Split your fees up into separate levels of action and opportunity.
So what is happening in your property market today when it comes to supply and demand for listing stock and vacant premises? Can you see the rental and vacancy opportunities and where they are growing? As a property specialist you can solve these problems.
So what can you do as part of providing leasing services? Think about these:
- Solving vacancy problems
- Relocating existing tenants
- Finding new tenants
- Changing the tenant mix
- Providing tenant retention plans and income strategies
- Anchor tenant plans and strategies
- Franchise business specialisation
When you look at these factors the leasing industry for investment property opens up substantially. Specialise in a property precinct, a property type, and be known as an expert when it comes to lease strategy.
Far too many agents and brokers look at a vacancy and a lease opportunity as a single transaction. That is wrong. You can look at the bigger picture when it comes to finding a tenant to fit into a property and its existing tenant mix. Consider the following issues:
- The rental strategy (net, gross, face, effective, and passing rents)
- Incentive strategies for attracting new tenants to the property
- The lease term for the lease and any option (if provided)
- Clustering improvements with tenant placement inside the existing mix
- Outgoings recovery or improvement
- Lease documentation to improve the property as an investment
- Choice of tenant to improve the overall property image
So there are plenty of good things to do here in attracting the right tenants to a vacancy in an investment property. Understand the plans of the landlord and where the income for the property could go given the supply and demand for premises in the local area.
From the points above it can easily be seen that the leasing process is highly specialised. That being said, it is best if you focus on the quality properties and the good clients. Larger premises in quality properties will also attract better fees and tenant interest.
Over time you can build significant sales listing opportunity from the leasing process. A lease that is negotiated today for your client landlord is likely to set up a sales opportunity in future years. Help your client understand the logic and importance of a quality lease and top tenant to their cash flow and eventual sales marketing campaign. As a leasing expert those factors can be built into your professional services.