Commercial Property Leasing – Know These 4 Key Facts About Your Property Market

In commercial and retail real estate today the leasing process is critical to the income achieved by landlords and property investors. It is wise for a commercial real estate agent or broker to offer a comprehensive leasing service as part of specializing in Investment Property. There are plenty of lease deals to be done; it is just a matter of finding them.

Many times you will see market pressures on vacancy, lease occupancy, and rental levels entering into the lease negotiation between the tenant and a landlord. Make sure that you as the leasing agent have a total and comprehensive awareness of the prevailing market conditions and that you share that information directly with your client as the landlord. Prepare them for the real facts of a rental negotiation.

The landlord must be thoroughly briefed about the property market conditions prior to any negotiation with a tenant. Realistic rental levels together with appropriate lease terms and critical dates should apply to any lease negotiation in today’s business environment. Every lease negotiation becomes a strategy taking into account the conditions of the property and its improvements, the current vacancy levels, market rentals, and the requirements of investment performance.

Here are some tips to help you with understanding the property market today and the prevailing lease conditions:

  1. The levels of vacancy relating to your town or city and the property type will have an impact on incentives and market rents. Look at the potential for oversupply and understand how it may impact the future rentals and investment performance. New property developments coming into the market will shift the balance when it comes to vacant space and the quality of buildings offered for occupancy.
  2. Review the market rentals that apply within the property type and your location. Those rentals will need to be tracked and monitored for future lease negotiations and the conditioning of your clients when it comes to lease is under negotiation. Understand the impact and the relationships between market rentals, outgoings, and incentives.
  3. There are different rental strategies when it comes to outgoings recovery. In any new lease, there will be decisions to consider relating to outgoings recovery and therefore the setting of gross or net rental. Levels of market rental will apply in each case so you will need to understand the averages that apply to outgoings within the property type given your location, your town or your city.
  4. Talk to business owners and tenants regularly. Ask questions about lease occupancy and lease termination. You will soon find tenants considering property change due to the pressures of expansion or contraction within their business today. You can track all the tenants locally through specific processes of direct contact, database, cold calling, and door knocking. Every leasing agent should have a comprehensive awareness of the leasing intentions of every business within their territory. In understanding the leasing intentions of tenants locally, your professional leasing services become more valuable to the landlords of the area. That will then help you in closing more leasing opportunities and listings.

So these are some important factors to understand when it comes to leasing property locally. Take the time to connect with tenants in your market today and review the prevailing market conditions when it comes to rental, incentives, lease documentation, and property improvements. Track the enquiry rates coming to your office regularly so that you can profile tenant leasing requirements for today’s market.

How to Market Your Commercial Real Estate Loan Business

All too often I see small business owners missing the mark with their marketing. Sure, it’s easy to do when you specialize in a specific industry niche and you spend your time engulfed in industry sector jargon. However, it’s best to put yourself in your potential customer’s shoes and think your marketing through from their perspective, addressing their most important questions. Your customers want to be able to trust you, to know you are looking out for their interests and that you don’t just see them with Dollar Signs in your sunglasses.

Below is a sample page, perhaps good for a website, brochure, email, or letter. Why not look this over and consider how you might form your own message. Use your own voice, your own style and remember you are talking to your customer across the table for the first time. You know what questions they will ask. Show that you care, that you are working for them, and will go out of your way to get them the best rates, and great service. Here is the sample:

Commercial Real Estate Loans

Are you looking to purchase an income property such as an apartment building, small office building, or retail center? Would you like to put several rental properties in your real estate portfolio into one commercial mortgage? Wish to find a suitable piece of land and develop that property? Do you need a loan for acquisition and construction?

Do you want to buy a business property with a business on it; a restaurant, carwash, service station, laundry mat, hotel, etc.? Are you looking for a commercially zoned property with a warehouse or industrial building on it? Are you expanding an existing business and/or want to own the property under your business rather than paying the monthly lease?

Are you in the agricultural sector, looking for specifically zoned farming property; land for a vineyard, orchard, or crop such as berries, vegetables, or flowers? We have significant experience to make this happen. Our area in Southern CA has one of the best climates in the world, and incredible top soil for growing almost anything.

We can assist with all types of commercial real estate loans including government-guaranteed loans such as FHA, USDA, and HUD. If you are looking for an SBA 7(a) loan or a CDC/SBA 504 loan for commercial real estate we can get it done.

We can assist you with traditional commercial mortgages, commercial bridge loans, or commercial hard money loans. We also have lines on non-traditional sources for hard money commercial real estate loans, which are custom tailored to you needs for complicated projects outside the normal scope of typical commercial real estate loans and mortgage offerings.

— — — —

Why not try something like this? Just because the Federal Reserve has raised rates doesn’t mean you have to let new deals and new clients move to your competitors. I hope you will please consider all this and think on it.