If you work as a commercial real estate leasing agent, there will be challenges and disruptions to the market throughout the year. All of these things will create some degree of pain and discomfort when it comes to working with landlords, finding tenants, and closing leasing deals.
A good leasing agent will track the trends of the market and make adjustments when it comes to their personal marketing efforts, inspections, and negotiations. In any given year, there will always be changes when it comes to rentals, time on market, and transactions. Current market knowledge and improving your professional skills will help you when it comes to dealing with these challenges.
So these are some of the most common ‘pain points’ that are common in property leasing today:
- Not enough tenants to service when it comes to the existing listings
- New property developments coming into the market that have an impact on market rental and leasing incentives
- Lack of inquiry coming in from current marketing activities
- Change of traffic or road conditions that will have an impact on property usage and or occupancy.
- Lack of car parking to support business function and tenant occupancy
- High quality properties coming into the precinct and shifting the tenant priorities and movements
- High occupancy costs and outgoings relative to a property type
- Too many vacancies available for leasing
- Unrealistic landlords that will not listen to the trends of the market
- Selective tenants that are difficult to negotiate with and close on when it comes to a new lease
It is interesting to note that most of these challenges exist in all market conditions. They just have a different bias depending on your local area and the current property trends.
One of the biggest things to watch for in property leasing is that of a changing property zone; it could impact business activity and sentiment in a precinct. The local council may shift the business base of the area by rezoning property types and property usages. When that occurs, it will have impact on landlords, rentals, occupancy rates, and business growth.
From the points above, it is easy to see that the commercial leasing process is quite specialized. Some agents treat leasing as a support service for sales activity. Whilst that is not necessarily wrong, you can make a very good income from your commissions in leasing if you choose to specialize only with quality clients and quality properties.
The best leasing specialists will focus on solving the above problems as they arise. They will have the solutions to help their clients through the challenges that these problems present. That’s how you can rise to the top of the market as a leasing specialist.