Commercial Property – How to Lease More This Year
Make no mistake; the leasing of commercial property is the bread and butter of the real estate industry. Leasing leads to both sales and property management opportunity. If you want a stable real estate business and more commissions, then leasing will help you get there.
Leasing is a service needing special understanding of the commercial property market, the premises, the landlord and the tenant. For this reason leasing should not be undertaken by the inexperienced real estate agent or property manager.
A good lease outcome is a product of balancing all the issues and capturing them in a good lease document. Think about these things and what you may know about them:
Rental levels for the type of property you are handling
The typical terms of leases required by the tenants today
Incentive levels and type given the market currently
The need for the property to be renovated and how that will be incorporated into the lease of vacant premises.
The services and amenities available for the given property.
The future of the area and the prevailing business sentiment.
The improvements in the property and how they match the needs of the market.
The supply and demand for lettable space in your area and by property type.
This is real market intelligence, the things that you must know and bring into your lease services and offering to the local businesses and landlords.
To lease more commercial property this year, you have to know your market so well and use that information to track the upcoming potential vacancies and tenant movement.
To get a sound leasing service up and running in your real estate business you have to monitor and track just two things. They are:
All the business tenants in your area and their future property needs
All the investor landlords in your area and their future leasing needs
This data has to be tabulated as you come across fresh information. The highly successful leasing agent is only that due to the facts and figures that they know about business movement and needs locally. They then use that information to keep in contact with the right people that need help in the future to find new premises or solve a vacancy issue.
One of the key indicators of leasing activity is business sentiment in your local area. Good or bad, the business sentiment will create churn and that is what you need as a real estate agent specialising in property leasing.
Know your lease rates and trends as mentioned earlier and the market deals will be easier. Your success in property leasing will give you more agency success all round.