Commercial real estate leasing is a special skill for a real estate agent. The best agents and brokers have people that specialise in just leasing of premises. That can be and should be by property type such as office, retail or industrial property.
Every property type has its own level of rental, outgoings, and standards of leasing. That is why specialisation in a property type is relevant and real; it brings significance to the property owner and can help lease a property faster.
It should be said here that the leasing task involves a lot of market awareness and penetration. Property Managers do not normally have the time to do this. That is why we have Leasing Managers or Leasing Specialists to serve the landlords at a higher and specialised level.
The bigger real estate agencies in regional towns and cities should have specially selected people for the commercial leasing task. In this way the quality of service to the landlord is provided.
These leasing focused people must have a solid and substantial awareness of:
- Rental trends
- Rental values
- Tenancy mix
- Common area utilisation
- Incentive values and methods
- Ways to grow rental and property performance
- Strategies for implementing Landlords works
- Leasing documentation
- Leasing legislation
- Negotiation methods in leasing
- Understandings regards property outgoings and recovery under a lease
- Lease rent reviews, lease options, assignment processes, subletting processes
- Supply and demand for lettable space in the area
- Business owners and tenants in the local area or their farming territory
- Building locations and tenant profiles
One critical thing should be said here regards renting and leasing commercial property. Never let the tenant into the premise for any fitout work unless they have signed the lease and then paid or provided all lease monies, bonds, deposits, guarantees, and given the landlord the rent in advance. Many a tenant has defaulted or changed their mind after early occupancy was provided. Without all the checks and balances in place the landlord is then left with a problem.
To know the trends in the local business community is to know the next leasing opportunity. Businesses need premises from which to operate. Landlords need tenants for rental and property performance. This is where the leasing specialist can rise to the occasion and help. The leasing specialist should know about all the vacancies and tenant movements before they happen.
A great lease with a good tenant will make a property more saleable when the property owner wants to sell the property. A great lease will also make the financier of the property more comfortable with the stability of the loan.