In commercial real estate agency, you will find that the leasing of concessions can be quite lucrative for you as an agent when it comes to contracts and growth of market share.
Over time successful leasing appointments can give you greater opportunities for selling properties. In working with clients through a lease process, you build the right relationships for ongoing help and service in commercial property.
Top commercial real estate agents are usually very familiar with both sales and leasing activities in the local area. They know that a leasing situation today that is well handled and negotiated will 'open the door' for a future sale opportunity if and when the property investor or owner gets to the point of action.
So the message here is quite clear. You should undertake and grow a leasing focus as part of your overall agency market share. Be open to helping the landlords that require guidance when it comes to leasing vacant promises.
Assuming that you can attract quality listings to your leasing portfolio, you will find that tenants will approach you directly for property inspections and property information. That being said, the tenant qualification process is quite specific. Ask the right questions before you go to a property inspection and match the awards accordingly.
Here are some questions to ask a tenant as part of considering new lease occupancy. You can use these questions to create a checklist and improve the professional leasing services that you provide.
- Understand that you are talking to the decision maker when it comes to that particular tenant and business. Also ask questions about how they may make a decision when it comes to a property that is shortlisted and available for lease. When it comes to businesses and larger corporations, the decision facility can be frustrated by boards of directors and a connection or approval requirement with head office. It is better to know about these things from the very start.
- Ask the tenant about the local factors that are important to the final property choice. In many respects, the property location may be based on current business operations and customer access.
- The ideal property that they choose will have certain priorities relating to improvements, services, and amenities. The tenant will have a short list of improvements that are essential to any property occupancy and relocation. Work through the short list so you can find the right locations and vacant promises.
- The tenant will have a budget that applies to rental and occupancy costs. Whilst the rent for concessions may be one thing to consider, there will be other costs associated with outgoings and consumable services such as electricity, water, and gas. Identify the correct and full budget that applies to the final property choice.
- Some tenants have a preconceived opinion as to the lease terms and conditions to be available, together with the incentives that they require in any new lease occupancy. The same can be said for landlords as part of leasing each vacant tenancy in their investment property .. That is where you should position yourself as the expert leasing negotiator with the local market information. You will need to arm yourself with evidence and information relating to compatible properties, lease situations, and incentives.
- Every tenant will have a particular use to apply to the concessions. That are useful be defined in the lease as the permitted use. The property needs to be suitable for that given the configuration of improvements, services, and amenities. The permitted use conditions of the lease will help you control the tenant's activities on the property. Be quite specific when it comes to the dismantling of the permitted use.
- Businesses will have particular requirements relating to staff access and car parking. A car park may also be used for customer access and loading or unloading of goods purchased. Ask questions about the practical ways in which the business will be functioning. Find out how the staff will be accessing the concessions, and what presses this will apply to the car parking availability.
- Find out if the tenant has inspected other properties in the local area with other competitive agents. It is common with most tenants that they will be looking around the market with three or four different agencies. You need to know this before you spend too much time with them.
- When it comes to leasing vacant promises, the landlord will require certain guarantees and commitments on the part of the tenant. They can be in the form of bank guarantees, rental bonds, and director's guarantees. Make sure that these are available from the tenant as part of the lease negotiation.
- It is likely that the tenant is coming from other concessions as part of the relocation. Find out where they coming from and when that needs to occur. That will have an impact on the negotiations that you undertake.
You can add to this list based on the property, the tenant, and the landlord. Create a checklist to help you with every lease negotiation and particular property type. In this way your services can be seen as superior and more professional when compared to the other agents locally.