When it comes to leasing and managing a retail property today, the tenant mix is critical to the income that you create. Without a successful tenant mix, the investment performance for the property owner will be difficult to achieve.
In a retail property today, there are just so many things to be carefully balanced; that is because of the prevailing economic conditions and the property market pressures locally. At this current time and in most locations, it can be difficult to find the right tenants to fill vacancies. It is also hard to keep the tenants in the property.
For this very reason, a tenant retention plan and a vacancy leasing strategy should be adopted by all agents in serving their clients. These elements should form part of the business plan for every investment property under management. Top clients need a top property management and leasing service, and that is what this process can do.
All of this being said, as professional commercial and retail property leasing experts and property managers, it is up to us to bring the required experience and knowledge to the landlords that we serve. Special skills are required when it comes to tenancy analysis, and tenancy mix strategy. These special skills also command a fair and reasonable fee for service. Discounts do not apply for a top service in our industry!
The placement of a tenant is simply not a matter of just leasing, negotiating, and occupancy creation. It is a matter of finding the right tenant for the right property, and matching the lease back to the requirements of the landlord’s investment strategies. The age of the property will also have some influence on the leasing process given the requirements of refurbishment and tenancy relocation.
Here are some factors to merge into your property leasing strategy and tenancy mix.
- Get to know all of the tenants in the particular subject property. A close working relationship with them will help you identify any pressures of occupancy or rental payment. With the property market today, as difficult as it currently is, it is better to retain tenants in occupancy through good lease management procedures, than to lose them to another property where incentives or rental adjustments may be more attractive and the landlord is more flexible. Understand that many other real estate agents will be chasing your tenants as a natural course of business. Your property package needs to be competitive in the local property market.
- The factors of supply and demand will apply to your property type and the local area. Those factors will also influence market rentals, incentives, and vacancy factors. Every landlord needs to be updated regards the trends of the local property market so that sensible leasing decisions can be achieved. An extended vacancy and loss of rent is far more damaging to a property than a startup lease with a lower rental.
- Check out all of the major properties locally that could be considered as competitors to your subject property. Review their tenancy mix and vacancy factors. Look for the strengths and weaknesses that apply to each particular property. If possible, get details of the current market rentals and the upcoming vacancies in each property. With this information, you can influence some of those tenants towards your landlord’s property.
A very skillful commercial or retail leasing expert knows how to balance all of these things for the clients that they serve. Create a tenant retention plan and a tenant communication strategy to strengthen the overall lease profile of the property for the landlord. That is what leasing and property management is all about. In one word you could say it is the creation of ‘stability’.
If you want more tips on tenant mix and tenant retention, you can get them at our main website http://commercial-realestate-training.com/