When it comes to leasing commercial real estate today, some landlords have little real understanding of all the leasing facts and issues in the market. Whilst they may think they comprehend market rent and rental evidence, the real situation is commonly that they will not have the up to date facts of tenant enquiry and tenant sentiment in the property type. That is where you as the leasing agent can help. You are the leasing specialist.
The leasing of vacant premises can be quite lucrative however you as the agent should mainly focus on listing quality and larger premises in the local area. In this way your fee will be appropriate for the amount of effort that you put in to getting a result for the client. In some ways the smaller listings are more work than the larger and better ones.
Quality listings should be taken on an exclusive basis; that’s the rule. If a client wants you to lease a low grade small shop or office premises in a stand-alone situation, consider just how much work will be involved and the market interest that may be available or existing.
If you really want to list low grade properties, then only do so by taking an ‘open’ listing; you then do not have to devote too much time to the listing. If you do find a tenant for that low grade property then you can quote the listing and take and inspection through. As you can see I am not a big fan of agents wasting time on low quality and small listings.
Here are some ideas and tips to help you work with landlords in today’s property market.
- Keep them up to date with competing properties in the overall location. That information should include rental rates, marketing methods, inspection details, and time on market.
- Talk about the supply and demand factors that are applying through the local area and what you see happening to property inquiry and availability.
- Leasing involves a number of variables such as rents, rent types, incentives, and ideal lease terms. The landlord will have a property that is suited to certain conditions of tenant occupancy so give them the alternatives to consider; also make the recommendations that will package the property and rental returns for investment improvement.
- Most tenants that take up new lease occupancy will come from the local area and business community; given that they understand the market and most of their customers are local. To be successful in leasing, it is wise to stay well connected to the local businesses and tenants. In this way you can put more inspections and negotiations together when a quality property comes into the market for lease.
Fees and commissions for leasing should be appropriate for the work involved and the property in question. If the landlord will only pay a low fee I would question whether you really want to take on the listing. It’s your choice.