Commercial Real Estate Agents – Franchise Tenant Opportunity Today

In commercial and retail property today, franchise tenancies are a significant opportunity for you to work on.  Franchise tenants know exactly the property types and locations that they require to make their business model work.  You simply need to know their needs and then find the required properties.

The good thing about the franchise business structure today is that the hard work of tenant selection is largely removed.  Any tenant taking up the lease of the premises for a franchise brand, will already have been vetted and scrutinized by the franchise holder for business skill, quality, and stability.  In other words you are likely to get a high quality tenant as part of the leasing process.

It should be remembered that the franchise business agreement will run for a number of years and work in a particular way.  It is therefore a requirement that the lease to be negotiated ties into the circumstances and conditions of the head franchise agreement.  Any landlord that owns the property or the premises to be leased to a franchisee should be somewhat flexible in achieving the match between the business agreement and the lease arrangement.  The best way to handle this adjustment is to have a solicitor work on behalf of the landlord to achieve the documentation balance and parity.

So let’s go back to the point that you can tap into the leasing advantages of a franchise business today.  Many of them require premises to operate from.  All of them will have studied the local area to understand where the best locations are for their product and or service.

Here are some ideas to help you establish the right communication links for future leasing opportunity with franchise groups:

  1. It is likely that there is a website for the franchise association in your city, state, or country.  From that website, you can usually get a list of franchise brands and models.  The list thereby becomes a cross reference for future telephone contact and cold calling.
  2. Understand how your local area, town, or city is changing.  That demographic shift will provide an opportunity for some franchise businesses.  Get the figures from your local council or municipality as to how the population is changing, where new developments are to occur, how the transport corridors are working, and what the business community is doing.  All of these things will create pockets of opportunity for franchise businesses.
  3. Check out the other franchise tenants that are already located throughout your region.  They will have competitors operating within a similar product or service.  Talk to the competitors in each case to see if they would like to enter the region and tap into the local business opportunity.
  4. When it comes to retail premises and shopping center properties, some locations are well suited to the franchise business model.  Talk to the shopping centre managers and landlords to see what future leasing needs they may have.  You can then judge how that will suit the franchise operators or tenants that you have been talking to.

These four things give you specific leasing strategies to work on.  It is a particular business approach given that the franchise tenant and the business model are quite unique and special.

When you have established the right levels of communication with these franchise groups, you can identify the right locations, properties, and leasing circumstances that allow their operators to be successful.  Over time this can be a highly prosperous arrangement.

Commercial Real Estate Agents – Retail Shop Leasing and What You Should Know

In retail shop leasing and shopping centre leasing today the tenants and the landlords that you work with require special understanding.  Retail leasing is a special part of the property industry.  If this part of the industry is for you, then you will need to build your knowledge and understanding of many things.It is no secret that the shopping centre industry and retail shopping is under some pressure currently.  That being said, there will always be shops selling things and goods to buy.  It is just a matter of what people want to buy and how the retailer adjusts to the process of manufacture, supply and sale.

The internet is placing some factors of change on the way people buy goods. If a shopper is prepared to wait a few days or weeks they can get their required product at a cheaper price than if they were to buy the goods across the counter.  Online sales will always be cheaper due to the lack of retail shop overheads.  I still go back to the point that retail shops will not disappear; they will just change.

As a retail leasing expert you need to know many things.  Here is a list of some of the main ones.

  1. Understand where all of the local shopping centres are located and determine why they are successful today.  As part of that process you will need to check out the shopper demographics in each case.
  2. Some retailers will be more active than others, given the goods and services offered.  Talk to the successful retailers to understand what is working for them today and if it can be replicated for other retailers.
  3. Franchises are fast becoming required business to have in your retail tenant mix.  The advantage with franchises is that they have an established business model, and the branding attracts customers to your property.  That being said, they do have standard terms of occupancy that will need to be understood.
  4. Occupancy costs for tenants are a critical part of property occupancy.  There is a fine balance between unrealistic levels of rent, and acceptable rent levels.  You do not want to lease premises only to find the tenant going broke in 6 months.
  5. In the local area you will find that some newer property developments will place pressure on your tenant mix and therefore escalate your vacancy factor.  Be aware of the new developments coming into the property market and how they are attracting tenants to take up a lease in their property.

You can make a very good career in retail shop leasing and shopping centre management.  The fact of the matter is that you will need to specialise so that you have got the knowledge to provide real and relevant retail services to the tenants and landlords that you serve.

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