The industrial property market is usually the first to feel an upturn or downturn in activity when the economy shifts. That is because industrial manufacturing and small business integrate very closely to the economy of countries and the region within a town or city. If you are selling or leasing industrial property as an agent, watch the economic trends for your location and build your leasing activity around those businesses that are successful and trading well in an active segment of the business community.
In previous years some leasing agents would take on any ‘open listing’ for lease and then they would ‘hope’ for an enquiry to come in from the signboard. That model of marketing doesn’t work very well today. Most of the tenants in industrial property are researching the market online and approaching many agents or brokers as part of ‘leasing’. If you want to dominate your industrial leasing market then these factors would be very helpful:
- Exclusive listings only for at least 90 days (preferably longer)
- Get landlord marketing funds for a priority listing on the internet
- Do some ‘direct marketing’ of any vacant premises listing into the local business community
- Write and send letters as part of any marketing campaign to lease a quality industrial property.
- Make lots of telephone calls every day directly into the businesses and tenants of your town or city
In doing these things you will find tenants that want to move premises into the future. Qualifying those tenants then becomes an issue and a special skill for top industrial agents. Mixing and matching leasing needs into your tenant requirements is foundational to creating new lease deals and commissions. Here are some qualifying questions to help you with that process:
- Who is the decision maker for the tenant and how can you meet with them?
- When will the property be required? Will there be a lead time to making a property relocation work for the business? You may need to inspect the existing premises to understand just what the tenant is occupying now.
- What will be the use of the property and are any special planning approvals required?
- What improvements will be needed in the building or in the property for staff, clients, and manufacturing, office, and hardstand areas?
- What are the services and amenities needed for occupancy?
- Is there are rental budget and how will that compare to the property type in the current market?
- Has the tenant been looking at properties with other agents locally? If so find out what they have seen and when.
- What areas will be needed within the building? How will they be put to use?
- What are the critical factors that must be satisfied for the tenant to select a property?
- Do they need to be near transport corridors, ports, rail heads, or sources of raw materials?
- How long will they need to occupy the property and what type of lease will be required?
From these factors you have something to work with. You can add some local factors to this list and then embark on a plan of locating the correct vacant property to lease. The qualification process will help you greatly when it comes to converting more deals from your listings in industrial property. Ask the right questions and use a checklist for the process.