There are many ways to improve personally in commercial real estate leasing. The property market is always under factors of change and on that basis you as the leasing agent can change with it in ways to help you grow market share. Track and measure the factors of change in your property market that are applying to tenants, landlords, and property developers.
Creative thinking will help you see the things that are working in the industry today when it comes to leasing vacant space and attracting new tenant enquiry. In any period of 12 months, it is likely that the property market will shift from a tenant or bias to a landlord bias. You will see that shift across the following issues:
- Rental levels – Some rents will work better than others when it comes to negotiating leases in today’s market. There are differences between net and gross rent in each of the property types, and tenants will set their negotiation priorities in each case. Generally the property owner will be your client, and on that basis the most appropriate rental type and rental level for the property type should be chosen for the optimal income result. That equation requires specific knowledge and property skill.
- Outgoings recoveries – How can you recover more property outgoings for your landlord client and thereby improve the net income? The rental type chosen for the lease will impact the outgoings recovery method, and all that happens at the time of lease negotiation. Understand the rental averages that apply across outgoings and within property types. You should be the negotiation specialist to help your client improve their financial position in today’s property market.
- Incentive rates and types – Some incentives work better than others for a given leasing situation. Rent free periods, fitout incentive, and cash all have a potential use in providing lease incentives. What incentive types work well in your market to help you close the lease deals faster and with better long term value for your client?
- The levels of tenant enquiry – How can you create more enquiries for the listings that you have for lease? In one simple phrase the answer is, ‘list high quality properties exclusively’. Good properties attract better levels of enquiry and ultimately that is what you are trying to achieve.
- Supply of new space – Track the new space supply coming into the market as it will have an impact on the lease choices that tenants make. Older properties and those of a lower grade of space will undergo pressure when vacancy rates lift and higher quality properties come into the market. Track the factors of supply and demand.
- Occupancy rates across property categories – Occupancy rates and vacancy rates are linked. Net absorption of lettable space will flow between both ratios and levels. The absorption of lettable space will be influenced by business sentiment and growth. What do businesses think of the economy in your location? Are businesses starting to thrive? Are they employing people again? The answers to those questions will help you see where the next factors of growth will happen in commercial real estate leasing.
All of these things will give you plenty of ideas and opportunities to track in commercial real estate leasing today. The opportunities are there to be found when you know your numbers.