Commercial Agents – 5 Ways to Find More Tenants Today

In this commercial property market, tenants are selective in the properties that they want to move to for a new lease. In most cases, the tenants will look at a number of premises and compare a number of rentals before they make a final decision.

This means that tenants could be talking to a number of agents at the same time. You need to be aware of the problem and adjust your inspection processes accordingly. Any information you get from a tenant may be a manipulation of the facts and not really tell you the other properties that they are looking at.

When it comes to processing tenant enquiry today, you may only have one opportunity to present the property and negotiate on the rental. Landlords should therefore provide a very attractive lease and rental package at the outset of negotiations.

The abundance of new or vacant premises creates a broad selection for the tenant to choose from. Competition therefore becomes a factor of leasing premises today and both landlords and commercial agents need to adjust the marketing processes accordingly.

To attract more enquiries to vacant premises, some of the following strategies will assist:

  1. Always put a quality signboard on the property as soon as possible. It is quite likely that the successful enquiry will come from the local area and businesses nearby. These businesses know the area and it is very simple for them to relocate if they need alternative locations from which to operate their business.
  2. Create a brochure for the vacant premises and personally take the brochure to all the surrounding businesses within 500 metre radius. Talk to the business owners regards their existing lease and property location. This process alone will give you a lot of opportunity and feedback for your database. Over time this can be turned into more successful transactions.
  3. Listing of vacant premises on the Internet is quite important. Many potential tenants will surf the net to find suitable premises to inspect. The design of the Internet adverts should feature simplicity and include a dot format. The property message needs to be simple and eye catching. You can use keywords from the search engines to optimise the exposure of the individual advert to search engine enquiry.
  4. A successful leasing agent is one that knows the local area comprehensively. As part of that process, they will know the movements of all the local businesses and the lease expiry dates. They will also know the landlords that own the most desirable property locations. Ask questions and talk to a lot of people that have a vested interest or position with commercial property.
  5. Always put your enquiry into a database and keep the contact process moving with all qualified enquiries. It may take some months to find the right premises for some of your qualified tenants; however the process really works when you dedicate the time and the consistency to prospecting.

When these rules are followed, you can tap into a lot of market activity and facts. The successful leasing agent is one that matches leasing needs to properties; it is that simple. Focus your efforts on the process and the business will come.

Commercial Agents – Servicing Landlords in Commercial Property Today

Commercial property management today is a specialised part of the real estate industry. The landlords that we serve require expertise and experience to ensure that their property performance and rentals are optimised.

That being said, there are a number of variables to be balanced and structured into the property performance plan for any landlord. Here are some of the main ones:

  1. The tenancy mix and profile for the property
  2. The rental opportunities as they apply to the sitting tenants
  3. The lease terms and conditions as they apply to the tenants in occupancy
  4. The maintenance of the property to allow it to function successfully for the tenancy mix
  5. The outgoings costs relating to the property operation throughout the year
  6. Arrears rectification processes as they apply to the tenants that are in default
  7. Vacancy management within the property to minimise loss of rent and loss of outgoings
  8. Enforcement of the lease documentation and terms and conditions as they apply to each single tenant and the circumstances of each occupancy

So there are a number of things to think about here and help the landlord with. These factors become challenging the larger the property. This is where the property performance plan and the building budget become integral to the financial planning of the property over each financial year. It is the job of the property manager to ensure that these processes and reports are well considered and structured.

Given that commercial or retail property management is such a specialised process, it pays to have a monthly report structure that comprehensively covers everything that is going on within the property. The monthly report also becomes a record of the building activity and building status for all concerned.

All these things being said, it is unfortunate to see some property managers simply send out computer generated reports at the end of each month without due care and regard for the facts and details contained therein. Take time to go through your reports and check the information prior to documentation being sent to the landlord. There is nothing more embarrassing than being told that the reports were wrong or indeed the wrong reports were sent to the client.

Many agents will understand the high value of a property management portfolio to their overall business. The fees that are paid for commercial real estate property services are reasonably high given the complexity of the work involved. That also says that property managers should be suitably selected for their skills and knowledge regards the property type. When you get this balance correct, the property management portfolio will grow within the agency business profile.

Commercial Agents – How to List a Commercial or Retail Property

When listing commercial property today for sale or for lease, it is important that you get all the facts relating to the property and the ownership. Failure to gather all the information can create significant problems later when it comes to negotiating sales and negotiating leases.

The due diligence process that is later applied to the property contract or property lease can easily find discrepancies and errors that can jeopardise the sale or lease. Many a commercial real estate agent has suffered the consequences of misinformation or missing information when working with a property listing.

Always take notes from your discussions with the property owner, ask questions, and always seek third party evidence in writing of any critical items. It is surprising how important this information becomes when difficulties or disputes occur as part of the property marketing and negotiation process.

As another note of importance, the listing of a property by the agent should be formalised with the client legally and correctly. It is surprising how many clients have avoided the payment of commission because they have found a loophole in the listing process. Solicitors working on behalf of clients are well versed in reviewing and investigating the legality of the listing process.

Do not take prospective buyers or tenants to the subject property without a legal listing arrangement or authority being established with the property owner. It is also a wise move to introduce the prospect by name and in writing to the client so that any other agent for the client cannot claim the same prospect for the purposes of obtaining commission or helping the client in avoiding commission.

Here are some important facts to explore as part of the listing process relating to commercial, industrial, or retail property.

  1. First and foremost, the property ownership and the property title detail should be fully investigated and obtained. You need to know that you are dealing with the legally correct and authorised property owner. Get a copy of the property title.
  2. You also need to know exactly where the property is in relation to its boundaries and its constructed improvements. The improvements as constructed on the property should be suitably approved by the local building authority. There should be no outstanding orders or notices that apply to the property or the premises. The occupancy of the tenants within the building should be legally correct.
  3. The property title or the property location could give rise to some encumbrances, rights of way, or other interests on the land. These should always be investigated as they can be frustrations to the marketing, selling, or leasing process. Get copies of the relative documentation and review it before proceeding further.
  4. The property history and the property usage will give you some important information. Ask questions about environmental matters, heritage matters, services and amenities, property operating costs, and tenant mix.
  5. If the property is being taken to the market for sale, you will need copies of the relative lease documentation for all of the tenants within the tenancy mix. All of this documentation is to be reviewed completely and thoroughly to ensure that it is current, enforceable, and not producing any irregularities. Look for leases that are due for a rent review, a lease option, lease expiry, and outgoings reconciliations. Make sure that there are no lease defaults current, and if there are, you will need details of the status of the default and the method of resolve. When in doubt, don’t proceed with the marketing of the property until you understand the impact that the defaulting lease could have on the sale process.
  6. Check out any vacancies as they apply to the property and find out what the property owner is doing about them.
  7. Ask about any current lease negotiations that could impact the sale in timing or price. Buyers for the property can be sensitive to high levels of vacancy.
  8. If the property is to be sold, the net income and the property outgoings will be important to the pricing process and marketing that you adopt. Get all the right detail here.

The listing of commercial property is complex process that can be significantly simplified with checklist documentation that is suitable for the property type.