The commercial real estate leasing market will change throughout the year based on business activity and sentiment. For this reason you do need to set some performance indicators that will help you understand where the market is changing and what tenants are looking for.
A successful commercial real estate leasing executive will support the property management division and the sales division within the same business. There should be a strong integration between the leasing activities of your top leasing people and the other divisions of your business.
Every property type is unique and special when it comes to leasing. Special skills are required when it comes to the differences of property types including industrial, office, and retail property. Specialization on the part of each individual leasing executive will help attract the clients to use your agency services.
Top leasing agents provide specialist leasing services and are known for that skill. They help clients with strategies including the following:
- Vacancy management
- Tenant sourcing and selection
- Lease terms and conditions
- Tenant retention
- Outgoings recoveries
- Vacancy minimization
- Project leasing
- Renovation and relocation strategies
- Tenant mix and tenant clustering
- Rental strategies and rental types
So an expert leasing operative should understand all of these factors and provide specific solutions to the clients that they serve. There is no point wasting this knowledge on a small and below average property; aim for the top of the market and the quality properties that need top servicing.
Some top agents choose to work with leasing understanding the opportunities that they will get in sales at a later time. The strategy is wise and does have rewards over the long term. The landlords of today with a leasing requirement will be the property owners of tomorrow seeking to sell their asset at a reasonable price. That being said, the strategy behind every lease should be an enhancement to the physical function and sales opportunity for each property.
An average and generic lease will do nothing for the future sale of the property. True commercial and retail leasing specialists really do understand how to structure a lease and make it attractive to the future of the property and of benefit to the property owner.
Leasing specialists should look to the market regularly to understand the opportunities coming from the business community and the property investment community. These are the indicators to monitor:
- The supply and demand as it impacts particular property types
- The levels of market rental that are being achieved across the various categories of properties
- The time on market applying to vacancies locally
- The lease standards that are expected on the part of landlords when it comes to a new lease structure
- The incentives that are in the market today to attract new tenants
- New property developments that could have an impact on existing occupancy rates and tenant movement
- Vacancy rates that exist now in the market and the trend upward or downward
- Business sentiment as it relates to property occupancy costs and relocations
- The improvements, services, and amenities that tenants are looking for in a new lease
These indicators will help you with identifying and tracking future leasing opportunities. Get to know all the businesses in your local area and you will soon see the relocation opportunities and leasing fees that exist.