You can make some valuable client connections and commissions from the ‘tenant advocacy’ side of our property business and your commercial real estate market. Does this interest you? The better leasing clients to service with tenant advocacy are local larger companies and corporations. They don’t normally have the time, the skills and the energy to focus on finding new premises in which to relocate.
Are you up for a bit of tenant advocacy work? How can you specialize to make things happen with tenants in your town or city?
Methods to Grow Tenant Advocacy Opportunities
Here are some ideas to get things started:
- Know all the local tenants and the upcoming lease expires – As you talk to ever more local businesses you can track the predictable lease expiry dates. You can also track the options of extended lease periods. Either way there will be tenants requiring local leasing information and negotiation assistance. Are you the person to help them? The fact of the matter is that they will need expert help; that is why I said that it is best to focus on the larger companies and corporations. They are generally the tenants that will pay handsomely for expert leasing help. Lock them in with a client relationship and a commission agreement for a satisfactory outcome.
- Understand market rentals – The trends with rentals will shift due to vacancies, business sentiment, upcoming property changes and the future supply of vacant new premises. What are the rents from a landlord negotiation perspective? How can you position your tenant clients for a better rent and lease outcome? Remember that market rentals are impacted by incentives, and outgoings recoveries.
- Knowing the current listings – When the local vacancy factor is higher than 10% in any market segment, it is likely that rents and inquiries will be impacted by incentives. Track those trends so you know how to move a deal forward using the incentive benchmarks from the property market as pivot points on the negotiations.
- Understanding supply and demand pressures in leasing – Any new property development under construction is likely to influence the asking rents for the location. Many tenants like to move to newer premises, but the economics of higher rents and newer premises are a fine balance to manage. You can watch the trends in rents and incentives to better position the tenants that you serve.
- Reviewing vacancy lists and occupancy rates – On a monthly basis try to assess the amount of vacant space on the market in your territory. Are the vacancies rising or falling? The best way to do that is through tracking of newspaper and internet listings. You can also watch the time on market factors for vacancies.
- Determining the requirements of services, amenities, and property improvements – A good property will generally lease quickly and effectively. The older properties in poor locations tend to stay on the market for a long time. You can use the standards of services, amenities, and the lists of property improvements in each location or prime property to understand the attraction factors to tenants and local companies.
- Tracking landlords and properties – Determine just where all the high quality properties are located for the region and within your town or city. Why are they classified as of a ‘top quality’? Why are tenants attracted to those properties?
In providing tenant advice and advocacy services you can really specialize in so many valuable ways.