In commercial real estate leasing, there are special channels of opportunity with landlords and tenants that should be fully explored. As the broker or agent, you are the person to choose your business channels and ideal clients. As a rule, spend more of your time with quality tenants, landlords, and properties, first and foremost. The active word here is ‘quality’.
Also, think about the properties that you should be specializing in or with across your territory or precincts. Older properties do not create much leasing momentum, and the improvements or services in the older properties simply don’t match the needs of today’s businesses. Newer modern properties create more leasing interest and inbound enquiry. Where are the newer properties in your location or territory? How can you tap into them?
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So here are three main ways you can build a lucrative leasing business with a bias towards property types, quality, and local area coverage:
- Tenant advocacy – You can and should act for quality tenants as part of your professional services. Choose the local tenants and reputable businesses that are larger or of a corporate nature. They are the businesses that usually need property help and relocation assistance. They are also more inclined to pay reasonable commissions as part of engaging a leasing agent to work exclusively on their behalf. There are plenty of ways that you can save a tenant money as part of a direct lease negotiation. Rents, occupancy costs, lease terms and conditions all require negotiation; most tenants do not know much about that, and they need professional help. Focus on tenant quality and size.
- Vacancy marketing for landlords – Properties with multiple tenants in occupancy can have difficulties with tenant retention and vacancy management. Look around your area and check out the larger office and retail properties; you will soon see some vacancies that require resolving. Approach the landlords and or the property managers directly. Most property managers have not got the time to do their leasing; they need help from leasing professionals in the local area. You have a tenant list and local leasing coverage so use it. Your tenant database and lease market coverage will be a valuable marketing tool to use with local landlords and all property managers. Make sure you get a good fee for any leasing service; don’t skimp on fees. Know what the local area fees are for a positive lease outcome. A landlord needs a tenant more than they need a ‘discounted leasing fee’. Ask for an exclusive appointment on the leasing requirement and then engage your services on fair and reasonable fees. Help landlords solve vacancy problems; that’s your job.
- Project leasing – A new property development that is to be coming up for release locally will be a good source of multiple leasing commissions. It is not unusual to charge a premium fee for ‘pre-leasing’ services in a new property development. Get to know the developers operating in your area, and the developments that are underway in your primary precincts. Look for the approvals that are coming out from the local municipal council or building authority. Check out the meeting minutes of the planning and development authorities. There will be a balance of supply and demand to watch as well; get to know about rents, incentives, and lease conditions.
So, there is plenty of leasing business to be tapped into through these three channels of clients and the associated property types. If you have chosen ‘leasing’ as a market segment for your brokerage activity, dig deeply into these three client types and get to know the local people comprehensively. Soon you will see where you can bring tenants and landlords together as part of a positive leasing outcome. Choose your properties and choose your leasing clients.