In commercial real estate brokerage, the landlords in any town or city are welcoming of ongoing contact with brokers and agents. The fact of the matter is that those landlords need help with rentals, leasing, tenant mix, and lease negotiations. That is an opportunity in waiting for the astute leasing agents. (NB – you can get more facts about lease strategies in our Snapshot program right here – its free)
So, you can do things with this. If leasing is something that you can work with, then concentrate your tenant and landlord contact for the location and the property types. Provide some real service in the location across the vacancies and the precincts.
Here are some ideas to help you with landlord contact and services in your city:
- Facts about supply and demand – With the changes to property availability and upcoming new developments that are under construction or approval, there is a story to be shared here with local landlords about space supply and demand. Watch the ratios of available lettable space to vacancies. Concentrate the ‘numbers’ in your town or city with relevance to the precincts.
- Rental updates – What is happening with rents and the locations? Assess the rental shifts with gross rents, nett rents, and incentives. Graph the trends over the recent months and years, and in that way, show the investors of the area what is happening with rents and returns on investment; look at the capitalization rates and the yields.
- Vacancy updates – The level of vacant space and the future supply will impact rents and incentives; that is where your tracking processes will help with vacancy and rental predictions. Negotiate your leases and rents based on other properties and comparable rents.
- Time on market assessments – This is the time that it takes to lease vacant space. All things being equal with a standard vacancy and or property, there will be averages to watch when it comes to ‘time on market’. Watch your listings and the vacancies when it comes to levels of enquiry and ultimately the renting process. If the landlord is ‘proactive’ with rents and marketing strategies, then you should be able to see average trends on letting up any vacant space. You can graph that trending process and show your landlord clients what is happening with the vacant space and the conversion to occupancy.
- Occupancy costs and rental alternatives – There are a few different ways to rent out a commercial or retail space. The most common ‘variable’ to work with will be the rental amount and types. Understand what strategies apply to gross and net rent negotiations in your town or city. Advise your landlord clients monthly about just how you can see the best way to package rents and thereby shorten the lease marketing of their property.
- Tenant negotiation and retention programs – Most landlords want to optimise rental cash flow and reduce risk; on that basis, they need tenants to stay in occupancy and pay a reasonable rent for the location. That is where you can help with a tenant retention program. Construct a special service of tenant retention that you can use with your better clients with larger properties. Negotiate a fee for leasing within an existing tenant mix and property; get engaged by the client to support the property cash flow with a tenant retention program. Track all lease expiry dates at least 12 months out, so you can negotiate all the leases early with the tenants that you really want to retain.
From these simple things, you can see how easily a leasing service can be designed for a location and for the landlord clients that you want to serve. Specialise leasing in a location and within a property type; get to know all the tenants in a location and pitch your leasing services to local landlords based on your tenant database and awareness of movement.