Principles of a Sales Pitch to a Commercial Property Tenant

When you are leasing commercial property to a tenant, there are a few good principles to follow in the sales pitch about the premises and in the process of negotiating leasing. These principles apply with both office and industrial premises.

At the outset remember that the inspection and the pitch is all about the tenant and the premises; it has nothing to do with you. You are only the facilitator to the deal. All comments and questions should focus on the tenant and their needs.

Remove your ideas of more commission and closing another deal immediately. Start to focus on the tenant and the benefits they can get from the property. You should know the property and the location better than the tenant so you can do something with that knowledge.

Here are some ideas to introduce to the inspection and negotiations:

  1. How would the tenant and the business operate from the new location?
  2. What will the property and tenancy do for the tenant in their business?
  3. How will it impact productivity in costs and time?
  4. What will the staff do with more space and fresh new premises?
  5. How can the fitout design improve their business function for staff and the departments of the business?
  6. What are the possibilities of expansion from the premises into adjoining tenancies?
  7. Will the premises improve their customer access and service capability?
  8. Proximity to other businesses in the precinct may be beneficial
  9. What image and prestige will the new premises give the tenants and their business?
  10. Transport facilities and car parking may be offering better business functionality for the tenant.
  11. Will the new premises help with storage, access to raw materials, or ports?

All of these points will help the tenant look at and see the advantages of the new property. When you add your local knowledge to the process of inspection and discussion, the tenant will give you further ideas to drill down on.

One other strategy factor to use in the tenant pitch process is the best way you can inspect the property. When the property was first listed you should have worked out with the landlord the best way to take tenants into and around the property. This helps you with the interest factor and the close when it needs to be done.

The process of inspection and sales pitch about the leasing property is really easy when you think about it from the tenant’s perspective. Put yourself in their shoes, talk about the premises from their angle; the lease negotiation will be much easier.

Secrets to the Structure of a Commercial Property Management Proposal

In commercial real estate agency, it is common to be preparing a property management proposal to submit to the property owner following a sale or a lease. This is the most opportune time to seek a new management appointment.

The structure of a commercial property management proposal will be designed for the property, the landlord, and the general precinct location. Importantly the proposal should tap into the strategies and ideas that help the property owner to achieve better property performance through sensible strategies of lease performance, income, and expenditure control.

Here are some key ideas to help structure your proposal for the management of the property. You can add your specific agency recommendations around the model.

  1. An executive summary should always be placed at the front of the document. This allows the client to quickly grasp of the main strategies and outcomes that you can see as part of the management strategy.
  2. Summarise the property physically together with locational elements that impact tenancy mix or occupancy. This provides clarity as to how you see the property and how it can be managed.
  3. The lease and tenant mix management processes should be detailed within a section of the proposal. Care must also be taken in reviewing the tenancy schedule first to ensure that the leases are totally understood and accurately reflected in your recommendations. You should also be looking for occupancy matters that need to be immediately addressed after management handover; such as rent reviews, options, lease expiries, make good processes, and arrears.
  4. The daily maintenance and function of the property will require a specific management processes. The tenants, customers, and landlord each have a different relationship to the performance of the property physically; they all have needs in the management of the property. It is wise to review the special maintenance demands of the property and to make specific recommendations regards maintenance controls, plant and machinery management, and risk management that applies to property function. As part of this it may be necessary to talk to the contractors that supply specialised maintenance services to the plant and equipment.
  5. The property manager reporting processes to the landlord will be part of the property management service. Detail the relevant reporting systems that you can adopt and implement. The landlord may have other particular special reporting requirements to incorporate into the program.
  6. The financial reports to be provided to the landlord can be split into examples at the back of the document; this allows the landlord to see the comprehensive nature of your reports and controls. Normally the reports will include income analysis, expenditure analysis, budget status report, arrears report, tenancy mix strategy, tenancy schedule, and lease management report.
  7. The management of maintenance contractors associated with the essential services and major plant and equipment should be itemised. The major plant and equipment provides functionality to the property and tenant occupancy comfort. Any concerns that you may have here should be identified in the proposal.
  8. If the subject property is complex and contains a number of tenancies, it is likely that a business plan including a tenant mix strategy should be compiled. This helps the landlord to see just how you will implement controls across the tenant mix.
  9. Summarise the relevant personnel to be applied to the management of the property. In a large office or retail property the list is lengthy; it can include property manager, lease manager, engineer or maintenance manager, tenant services manager, and onsite management staff.
  10. The fees to be charged to manage the property should be itemised. In some cases they will be split into base management fee, on site management office costs, and the on-site management staff.

Within each of these main categories of your proposal, you will have recommendations and ideas regard particular things that should be immediately implemented in the property.

The property management proposal is prepared on the basis of relevance to the property and the needs of the landlord; not on the relevance of your agency to manage it (you will prove that anyway if your proposal is of high quality).

New York City Cleaning Services – How Commercial Cleaning Enhances Property Value

In order to maintain property values, most people would like to be able to do a deep cleaning of a home or office on a regular basis.  However, it is not always a practical goal for many people.  In order to do such a deep cleaning, most people would have to rent or buy cleaning equipment and products to use in the home or office.  Rental equipment is usually not kept in the best condition and may not work very well, leaving residue from previous cleanings in a home or office that is currently being cleaned.  The products that individuals can purchase are usually not the industrial strength products that New York City cleaning services can purchase.

In addition, to do a deep cleaning of the home of office, there has to be a substantial amount of time available or at least a commitment to a cleaning rotation in which the different aspects of deep cleaning are added to the normal cleaning that is done.  Most individuals are not able to commit to such a schedule in the course of their busy lives, leaving the deep cleaning undone and possibly reducing the building’s value over time.  Hiring professional New York City cleaning services is one way to ensure that the home or office is kept in the best condition possible.

What to Expect from New York City Cleaning Services

Professional New York City cleaning services are an asset to the home or office from day one.  Not only does the service allow the home or office to remain in a pristine condition from week to week, but it also helps to maintain or increase the property value of that particular space.  Homes and offices that are taken care of on a regular basis by a maid service are considered of greater value since all aspects of those spaces are kept free of mold and bacteria which can corrupt them.  For instance, carpets that are deep cleaned regularly will last longer than those that are not since the molds and bacteria that tend to eat away at the carpet, discoloring it and making it fall apart, are not allowed to grow.

In addition, utilizing New York City cleaning services allows the home or office to be ready for sale on a moment’s notice since they are kept free of dirt and debris that tend to build up over time in a home or office that is not regularly deep cleaned.  By utilizing a professional service, the home or business owner is also alerted by the service if there are any problems that they encounter when cleaning.  They will often notice rotting wood, leaking faucets and other conditions that the home or business owner may not notice for a considerable amount of time since the problems are located in spaces that are not regularly visited.

These New York City cleaning services can be hired to come as regularly as the customer desires, and there are also usually a variety of options that help the person to customize the cleaning service to his needs.  When the desire is to keep the property value high, a regular service with a more comprehensive cleaning rotation is usually desired, as opposed to a schedule of deep cleaning that is less frequent.

Commercial Property Managers – Why They Have No Time and Work So Hard

If you are reading this, you are likely to be a commercial property manager or you know one; either way the question has hit the spot and you understand what I am saying.

It is a fact, many if not all commercial property managers have very little time to spare in their average working day. They are the hardest working of most commercial real estate people because they have to control and produce the property performance for the landlord; it’s the central part of their job. That takes time, effort and commitment.

Property management is not like selling or leasing a property where you can move across a number of projects and keep all of them moving in some form or another. In property management you have to stick with some very complex issues that can take days if not weeks to resolve. You can manage some really difficult properties with real challenges.

Add to this fact the tasks that each property presents every day with tenants, landlords, maintenance, and leasing, you have some real work to do. It is unrelenting and consistent. It does not go away. That is why you have no time to spare.

Given all of this observation, it should now be said that good commercial and retail property managers are some of the most qualified professionals in the industry. They generally know far more about property performance, tenant mix, and lease optimisation than sales and leasing people. They know how to make a property work.

To give you some idea of what I am saying here, the role of a commercial or retail manager would typically involve many things including:

  • Lease management
  • Lease optimisation
  • Vacancy management
  • Fit out approvals and controls
  • Refurbishment and renovations
  • Lease negotiations
  • Tenant mix strategy and analysis
  • Maintenance management and planning
  • Building income and expenditure budgets
  • Risk management
  • Due Diligence practices and systems
  • Energy management
  • Retail trade analysis and customer sales strategy
  • Landlord reporting and communications

So this list goes on. You can see why a property manager is really the central part of the property performance equation. A landlord needs a good property manager to help them with a complex property.

It is interesting to note that the inexperienced landlords of this world will consider outsourcing property management requirements to the cheapest real estate agency or property manager. Considering that these landlords are putting their income and expenditure in the hands of potentially one inexperienced person or group, and that person may have little real knowledge or relevance to the future of the property, the risk of damage to the property performance is very real.

So the message here is for all experienced and qualified property managers to ask for a reasonable and relevant fee for the services offered. Stay firm on your fees; those landlords seeking and taking discounts from other agents will soon realise the error of their ways and will likely come back to you when the property is financially derailed and the vacancies are rising.

When you are asked to fix a problem in a previously poorly managed property, charge a solid and fair fee for the issues involved. You are the professional and your services are worth good money. Professional commercial and retail property management is not an experiment for the feint hearted.