When you are to lease a commercial property, the facts about the property and the leasing process should be at your fingertips. Tenants will ask you plenty of questions as part of the property inspection and enquiry process. Lack of information can slow down or derail a property lease negotiation.
You may only have one opportunity to convert your tenant to an inspection or a negotiation. So it is important to remember that preparation is the key to converting more leasing activity in a positive way. I like to do a lease orientation in preparation for that tenant attraction process.
Let’s face a few facts about property leasing:
- Every tenant will have different demands
- Every landlord will have specific ideas about rental, lease terms and conditions, and occupancy
- Some modern and new office or retail properties are very complex when it comes to lay out, fit out specifications, and the as built factors of design
- Property improvements, services, and amenities differ significantly from location to location
So there is plenty to think about here if you are the leasing agent. There are a lot of things to understand, look into, and review. Without capturing the interest of the tenant, they will quickly move on to another property inspection with another agent. You will only have one short opportunity to interest the tenant in the property and the vacancy.
Lease and Tenant Orientation
Here are some elements of lease orientation that I recommend you undertaken as part of every vacancy assessment and marketing process:
- Size – Understand the layout of the premises and the vacancy. The size and the configuration of the floor plate will be critical to tenancy design and business function. Some businesses require floor plates that offer flexibility in office configuration and departmental interaction.
- Tenancy use – Every vacancy should be assessed so that the ideal tenant profile and permitted use can be decided. The existing tenancy mix within the property may also have some relevance to the vacancy and the new tenant selection. Understand the pressures and the priorities that apply in choosing the right tenant with the correct business orientation.
- Access and security – Understand exactly how tenants will move to and through the property as part of their business operations. Security today is also a factor of concern for many businesses as they strive to service customers and protect staff. The tenancy itself may have proximity card access within a certain zones and certain floors. Advanced levels of security help when it comes to attracting corporate tenants today.
- Fit out standards – Within certain buildings there will be a need to establish and manage the standards of fit out construction. In that way you can preserve the quality of the property and the presentation to both tenants and customers.
- Rents and outgoings – Set some targets when it comes to market rental negotiation. As part of that, you will need to consider the incentives that apply in the leasing process for the location and the property type. Do a full market assessment of rental trends and opportunities as they exist within the property type. Advise the landlord accordingly, and set some flexible rental ranges that apply to any potential lease, the associated incentives, and the terms of lease occupancy.
- Strengths and weaknesses – Every property will have certain strengths and weaknesses to be understood and worked through. The strengths can give you significant points of difference when it comes to marketing, inspecting, and negotiating. The weaknesses on the other hand will need to be addressed prior to any lease inspection or lease enquiry.
So there are some good things to be understood and optimized as part of the lease orientation process. As the professional leasing expert, you can get these things under control at the earliest stages of lease marketing and thereby improve the levels of enquiry, and the negotiation outcomes.