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:
- How would the tenant and the business operate from the new location?
- What will the property and tenancy do for the tenant in their business?
- How will it impact productivity in costs and time?
- What will the staff do with more space and fresh new premises?
- How can the fitout design improve their business function for staff and the departments of the business?
- What are the possibilities of expansion from the premises into adjoining tenancies?
- Will the premises improve their customer access and service capability?
- Proximity to other businesses in the precinct may be beneficial
- What image and prestige will the new premises give the tenants and their business?
- Transport facilities and car parking may be offering better business functionality for the tenant.
- 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.
When you work as a real estate agent, you must set goals each and every year as part of your business process. Without these goals, you cannot achieve the right momentum towards the right targets. You simply do not know where you are headed. Your goals should be realistic and aligned to the market potential.
The typical goals for real estate salespeople in the industry should usually centre on:
- The number of sales each year– You can track these from the historic sales records in the area. Most property ownership databases will have this detail.
- The amount of gross commission from the sales generated– the amount of gross commission you achieve will be generated by the size and type of property you work on. Importantly you should be focusing on the property type that is in demand at the moment.
- The amount of gross commission from the leasing generated– always keep an eye on the supply and demand of vacant space in your local area. Understand the types of properties that are being sought by tenants currently. Focus your leasing efforts on the vacant property that shows rental and enquiry potential.
- The number of listings to be worked on monthly and annually– there is a limited as to the number of listings you can service in sales and leasing. Importantly the listings you work on should be controlled listings in the majority. Open listings do very poorly in the property market and are uncontrollable from the agency perspective. Open listings do not sell fast; they sell more by luck.
- The average sale price or rental for the listings in the current market– prices and rentals always change. You need to know the trends so that you can list at the right price. Last year’s prices are not this years sellers.
- The average time on market for the current listings in the economic climate– the average time on market for a listing will change depending on the economic circumstances but it is always impacted by the marketing program and the selected price or rental set by the property owner. The right choices here are essential to a positive result. Any property for sale or for lease will become stale in the market within about four weeks of commencement of the marketing campaign. The seller cannot waste this critical time.
- The number of signboards in your territory and your share of that sign count– to generate a reasonable amount of market share you need signboards on properties right across your market. The more signboards you have placed in your market the better for your business.
- The percentage of listings that you have against the other listings in your territory that are with other agencies– as part of this analysis process, understand what a good listing looks like. There is no point having a lot of listings that are poorly priced, not attractive to the market, or those that will not generate enquiry.
- The number of listings on the Internet by location and by agency– the Internet is the most significant marketing tool for real estate agents today. Constant analysis of property listings on the Internet should occur at least on a weekly basis so you understand just what is going on with all the other agencies.
Setting these goals will allow you to focus on getting results; it will also help you with identifying the right action points to focus on.