When it comes to leasing commercial property today there are some essential facts that should be incorporated into the promotional considerations and the approved marketing campaign. In many locations the enquiry for vacant space has dropped due to the pressures of the global economy. This then says that the leasing strategy behind every vacancy should be carefully constructed by the real estate agent or landlord. Generation of qualified enquiry from your vacancy marketing has to occur.
The strategy behind leasing vacant space should incorporate the facts and pressures of the local property market. Here are some ideas to help:
1. Established rentals from comparable properties will have impact on the way in which you market your property today. For this reason it pays to survey and research the other available vacant properties.
2. Look at the trends of the agreed rentals and leases over the last two years so that any rental benchmarks can be identified.
3. Local levels of supply and demand will change if any new property developments are expected to soon be released on to the market. Keep on top of the approvals for new developments by regularly visiting the local planning office.
4. Changes to the local property precinct or zoning within the local development plan may also have an impact on your leasing strategies. You should have a current copy of the local development plan and understand the criteria of the nominated zonings as they impact occupancy and property usage.
5. The proximity of any comparable properties nearby that will compete with the subject property will have impact on your marketing campaign. On this basis your marketing campaign should be more professional and more pronounced than the competition properties.
6. Understand and study the reputation and history of your property in the local business community. Are there any identity factors which could frustrate or enhance the marketing campaign? What is the history of the property as the community sees it? Is it good or bad?
7. The impact of lease incentives should be considered in any leasing strategy. The availability of lettable space in the local area will have a direct flow through affect to the availability and type of lease incentives. Most experienced local agents will be tracking this incentive number and performance criteria.
8. The levels of enquiry in today’s market will vary from location to location. As the local real estate agent, you should have an idea of what the enquiry is doing and what they are looking for in today’s terms.
9. The target market that is most suitable for the vacant area should be identified and assessed for levels of enquiry. This is where the database maintained by the local real estate agent becomes critical in the leasing process.
10. Every property will have levels of improvements, services and amenities that support occupancy. These should be assessed for compliance and suitability to the target market. As a property gets older, its attractiveness to new tenants will become an issue unless the property is well maintained.
These are some of the important factors to consider in the leasing process of a commercial property. A specialist commercial real estate agent will handle these matters with efficiency and effectiveness. On that basis a property landlord will be wise to choose the local leasing agent with the greatest levels of experience and relevance to the property type.