Fact Finding the Ideal Tenant in Commercial or Retail Property

When you have a vacancy or a pending vacancy in a commercial or retail property, you need to target the right tenant to fill that vacancy.  This then suggests that not all tenants will be suitable for a given property, and that observation is correct and real.

Commercial property agents should know exactly what the right tenant would be for a given vacant area in any property; and then they should know how to find that targeted tenant.  Top agents do this all the time.  These top agents are in touch with the movements in the local area and business community.

  • How much do you know about the local business community and its leasing pressures and leasing future?
  • Do you know what tenants are looking for today when it comes to new property movements and where they are moving to?
  • Are you in touch with lots of tenants as part of the prospecting model that you use?

So what does an ‘ideal tenant’ look like in your property location?  To a degree the question is answered with the following factors in mind:

  • The needs of the local business community
  • The prevailing tenant mix
  • Business sentiment and volatility
  • Supply and demand for new and older lettable space
  • The growth of the surrounding population
  • The business base and profile of the local area

In any investment property location and area, there will be ‘seasons’ and ‘peaks’ of property enquiry in any given year.  In most ‘years’ the leasing market is active for just 10 months, allowing for seasonal holidays, climatic conditions, and property availability.  For this very reason it pays to work well in advance with known property vacancies and leasing requirements.

An ‘ideal tenant’ will vary from property to property but many of the following factors could be on the list of ‘tenant requirements’ from a landlord perspective.

  1. A stable business that brings brand and identity to the property
  2. A tenant that integrates into the property existing tenant mix well
  3. Lease terms and conditions that strengthen the property rental income over the lease term
  4. A solid and secure market rental that underpins the value of the property for the landlord
  5. Tenancy design and layout that gives a good image to the property

Does such a tenant exist?  Yes is the basic answer, and to find them you should make contact with all of the businesses in the local area on a regular basis.  Over time you will find the good tenants, and those that want to move to other quality properties.  Most businesses stay within the same general location when they relocate, so they can take their customer base from property to property.

Commercial Agents – How to Find Commercial Real Estate Tenants to Lease Premises

Today it is somewhat of a challenge to find the tenants that you need to fill the vacant premises in all of your listings.  Rest assured that the tenants are out there, and it is just a matter of developing a contact system to find them.

An in balance in supply and demand for new and existing lettable space means that most cities and towns can be experiencing an abundance of vacant space.  If that sounds like your property market, then read on.

The Best Way?

One of the best ways to find new tenants to lease premises is by maintaining a contact system in your database where you keep going back to the businesses in your local area every 90 days to see if occupancy matters have changed for them.

  • Do they need to relocate?
  • Do they want more space locally?
  • Do they want to sublet?
  • Would they want to assign their lease?

All of these are interesting questions that require specialist assistance and that is where the local agent can be of great value.  The local leasing agent understands the property market in many different ways including rents, lease terms, incentives, and lease types (just to name a few).

The fact of the matter is that most business owners just want to get on with making money.  They have little or no idea of leasing trends of the local property market until they require new premises to relocate to.

Most leases go for a period of 3 or 5 years, however the 3 and 5 year term is really common.  This then says that any tenant that has been in a lease for a period of time could be coming up to a lease expiry or renewal.  Approaching tenants and asking the right questions is all that is required to become successful as a leasing agent in this and any other property market.

Build the property market around you so that you know what is needed by the tenants today and have all of the property information at your fingertips.

What does a ‘top agent’ look like?  They look ‘busy’.  Build your system of contact with your local businesses and the leasing market opportunities will open up for you.