Real Estate Agents – How You Can Be a Retail Leasing Specialist

In this property market, retail leasing is quite special.  It can be extremely rewarding from a leasing commission perspective, however it does require the right knowledge and the right person to attract the correct levels of business.

Given that the current property market is somewhat frustrating and slow, many retail tenants are quite critical of the properties in which they are located.  The relationship between the tenant and the landlord is critical to tenant retention and vacancy minimization.

It is interesting to note that many landlords managing their own properties tend to cut corners when it comes to maintenance within the property.  The landlords in that case are too close to the function of the property to make clear and sensible decisions when it comes to property maintenance and property performance.  They tend to look at the bottom line before they look at maintaining customer comfort and tenant performance.

A retail property is a careful balance between the landlord, the tenants, and the property manager.  In many respects, the interaction has to work very positively.

Here are some skills required of a retail leasing specialist today:

  1. Get to know the local businesses throughout your region.  Visit the competing properties to see what their tenant mix and property profile is doing.
  2. Market rentals will change from time to time.  The pressures of supply and demand will shift the market rental throughout the year.  This then says that you need to be very familiar with the current rental trends.
  3. Incentives for leasing will come and go from the property market based on the levels of enquiry and the amount of vacancy.  Lookout for those property developments that could throw imbalance into the property market.
  4. A good leasing specialist will have an extensive database.  Within that database you will have a significant number of local business proprietors, franchise groups, and landlords.  Constant contact within those groups will help you identify future leasing needs and opportunities.
  5. Successful tenant occupancy will occur from a well-chosen tenant placed in a good property and tenancy mix.  This then says that the tenant should be well chosen for the property and leasing placement.  Every vacancy should be looked at from the larger perspective of the property and the overall tenancy mix.

Retail leasing is a very rewarding part of the industry; that being said, it does require that special effort and knowledge on the part of the individual leasing specialist.  You can succeed in this part of the industry through deliberate focus and skillful marketing.

Shopping Centre Managers – How to Get the Retail Tenant Mix Right

When it comes to leasing and managing a retail property today, the tenant mix is critical to the income that you create.  Without a successful tenant mix, the investment performance for the property owner will be difficult to achieve.

In a retail property today, there are just so many things to be carefully balanced; that is because of the prevailing economic conditions and the property market pressures locally.  At this current time and in most locations, it can be difficult to find the right tenants to fill vacancies.  It is also hard to keep the tenants in the property.

For this very reason, a tenant retention plan and a vacancy leasing strategy should be adopted by all agents in serving their clients.  These elements should form part of the business plan for every investment property under management.  Top clients need a top property management and leasing service, and that is what this process can do.

All of this being said, as professional commercial and retail property leasing experts and property managers, it is up to us to bring the required experience and knowledge to the landlords that we serve.  Special skills are required when it comes to tenancy analysis, and tenancy mix strategy.  These special skills also command a fair and reasonable fee for service.  Discounts do not apply for a top service in our industry!

The placement of a tenant is simply not a matter of just leasing, negotiating, and occupancy creation.  It is a matter of finding the right tenant for the right property, and matching the lease back to the requirements of the landlord’s investment strategies.  The age of the property will also have some influence on the leasing process given the requirements of refurbishment and tenancy relocation.

Here are some factors to merge into your property leasing strategy and tenancy mix.

  1. Get to know all of the tenants in the particular subject property.  A close working relationship with them will help you identify any pressures of occupancy or rental payment.  With the property market today, as difficult as it currently is, it is better to retain tenants in occupancy through good lease management procedures, than to lose them to another property where incentives or rental adjustments may be more attractive and the landlord is more flexible.  Understand that many other real estate agents will be chasing your tenants as a natural course of business.  Your property package needs to be competitive in the local property market.
  2. The factors of supply and demand will apply to your property type and the local area.  Those factors will also influence market rentals, incentives, and vacancy factors.  Every landlord needs to be updated regards the trends of the local property market so that sensible leasing decisions can be achieved.  An extended vacancy and loss of rent is far more damaging to a property than a startup lease with a lower rental.
  3. Check out all of the major properties locally that could be considered as competitors to your subject property.  Review their tenancy mix and vacancy factors.  Look for the strengths and weaknesses that apply to each particular property.  If possible, get details of the current market rentals and the upcoming vacancies in each property.  With this information, you can influence some of those tenants towards your landlord’s property.

A very skillful commercial or retail leasing expert knows how to balance all of these things for the clients that they serve.  Create a tenant retention plan and a tenant communication strategy to strengthen the overall lease profile of the property for the landlord.  That is what leasing and property management is all about.  In one word you could say it is the creation of ‘stability’.

If you want more tips on tenant mix and tenant retention, you can get them at our main website http://commercial-realestate-training.com/

Shopping Centre Managers – How to Market Your Tenant Mix and Shopping Centre

In retail property performance, the trade of the shopping centre will be impacted by the marketing plan.  For this reason you really do need to establish a marketing plan soon in the management and leasing of a property.

The marketing plan and effort should be structured into all of the leases that are applied to the negotiations with new tenants as they enter the property.   In this way you can make marketing a component of occupancy for each tenant and impose a marketing levy that all tenants can contribute towards.

A well marketed retail property will produce more trade, and that is of benefit to the tenants and the landlord.  The marketing plan for the property can be part of the annual business plan for the property.

Here are some factors that can be incorporated into the establishment of the marketing campaign and plan for your property.

  1. All the tenants in the property will benefit from the marketing effort.  For this reason you should meet will all of the tenants in preparation for the plan creation and implementation.  All of the tenants will have valuable input when it comes to marketing, trade and customer needs.   In larger properties it pays to have a committee of tenants established to coordinate the tenant requirements and feedback.
  2. Ensure that the leases that apply to the tenants support the marketing effort in some way.  Check all of the leases for each and every tenant.  Some lease terms and conditions will have specific methods of handling the marketing efforts.
  3. Talk to the customers that visit the property.  They will have valuable feedback as to what they would prefer in the tenant mix and how they see the property today.  Any weaknesses can then be addressed in promoting the property and any leasing situations or changes that occur.
  4. The anchor tenant in the property has a special relationship to the other tenants and the landlord.  A successful anchor tenant that is matched to the property and the local customer base, will help improve the market rental and the property performance.  Keep in close contact with the anchor tenant to understand their trading pressures and customer findings.  This information will help the design of your marketing campaign.
  5. Your local area will have factors of seasonal shopping.  Those factors should be incorporated into the marketing plan.  When you consider seasonal shopping, you can spread your marketing into special local festivities and holiday events.  In this way a 12 month marketing budget can be structured.
  6. Have special regard for the transitional shoppers such as tourists and business people if that is a factor in your property performance today.  What times of day or year do they visit your property, for what reason, and how should that be integrated into your marketing efforts?

When you establish a good marketing plan for your retail property, you have something to track and shape when it comes to improving sales and trade.  In this way the market rental potential for the landlord is underpinned.  The tenants will also be happy with the customer numbers that are coming to the property.

Retail Leasing Tips and Ideas for Shopping Centre Leasing Agents

Retail leasing is a special part of the property industry.  With the right knowledge and skills it can offer you as an agent, real opportunity in listings and commissions.  Even in the tougher times when retail trade is under some pressure, good commissions are still to be had by retail leasing specialists.

The fact of the matter is that retail leasing is so specialised that only some agents have the knowledge or the focus to do it well.  Shopping centres do not disappear when retail shopping is under pressure; they just change the tenant mix and market their tenant offering more specifically and aggressively.

So what can you do to lift your focus and become a good retail leasing expert?  Here are some ideas to get you started:

  1. Research all of the shopping centres in your region.  Assess each property with due regard for age, customer type, tenant mix, market rental, and vacancy factors.  You will soon see some standards and trends that apply to a successful retail property.
  2. Local business owners will be a very good source of opportunity and leads.  Talk to all the retail tenants in other properties to see what they are doing by way of opportunity and how they view the current retail trading conditions.  Some of those business owners will be looking to relocate or expand premises.
  3. Review the standards that apply to the tenant mix in all the local shopping centres.  You will soon see the successful tenants in the mix standing out for unique offering and marketing.  It is those tenants that will thrive in most economic cycles.   Talk to those tenants about current retail trade and what they may be looking for by way of a new business location.
  4. Get to know the principles of ‘clustering’ as they apply to retail shopping centre tenant mix and strategy.  Well designed retail tenant ‘clusters’ are a part of a tenant retention plan and tenant mix strategy in any shopping centre.
  5. Rent types will change from property type to property type and location to location.  Get to know the trends of market rentals that apply to retail properties through your region and compare those rents across different properties.  As part of that process, include factors of outgoing and tenant operating costs in retail shopping centres.  You will soon see how tenants must trade to be successful.
  6. Marketing trends in a shopping centre are both at a tenant level and also at a shopping centre level.  The retail message has to be consistently spread around the shopping community and region.  Look at the marketing efforts that apply to retail tenants and shopping centres.  Good marketing will help the profile and trade of any shopping centre.
  7. Incentives will shift and change for new tenants in retail premises.  Any new development project will offer new and high incentives to attract tenants to their premises.  Monitor the retail developments coming up in your region.
  8. Retail shopping centre owners and shopping centre managers will need the assistance of a retail leasing expert from time to time.  It is important to know that these people know what a retail property is all about and they will expect the same from the leasing people that help them with any upcoming vacancies.  Make sure you know your facts, market, and tenant mix before you talk to these people.
  9. Franchise groups will move around the retail properties and region.  Get to know the retail franchise groups for the lease needs they may have.  As part of that process you will need to know their standard terms of occupancy and property requirements.

Retail leasing is a very special part of the property industry.  For those of us that want to specialise in retail, the rewards are many.

Fact Finding the Ideal Tenant in Commercial or Retail Property

When you have a vacancy or a pending vacancy in a commercial or retail property, you need to target the right tenant to fill that vacancy.  This then suggests that not all tenants will be suitable for a given property, and that observation is correct and real.

Commercial property agents should know exactly what the right tenant would be for a given vacant area in any property; and then they should know how to find that targeted tenant.  Top agents do this all the time.  These top agents are in touch with the movements in the local area and business community.

  • How much do you know about the local business community and its leasing pressures and leasing future?
  • Do you know what tenants are looking for today when it comes to new property movements and where they are moving to?
  • Are you in touch with lots of tenants as part of the prospecting model that you use?

So what does an ‘ideal tenant’ look like in your property location?  To a degree the question is answered with the following factors in mind:

  • The needs of the local business community
  • The prevailing tenant mix
  • Business sentiment and volatility
  • Supply and demand for new and older lettable space
  • The growth of the surrounding population
  • The business base and profile of the local area

In any investment property location and area, there will be ‘seasons’ and ‘peaks’ of property enquiry in any given year.  In most ‘years’ the leasing market is active for just 10 months, allowing for seasonal holidays, climatic conditions, and property availability.  For this very reason it pays to work well in advance with known property vacancies and leasing requirements.

An ‘ideal tenant’ will vary from property to property but many of the following factors could be on the list of ‘tenant requirements’ from a landlord perspective.

  1. A stable business that brings brand and identity to the property
  2. A tenant that integrates into the property existing tenant mix well
  3. Lease terms and conditions that strengthen the property rental income over the lease term
  4. A solid and secure market rental that underpins the value of the property for the landlord
  5. Tenancy design and layout that gives a good image to the property

Does such a tenant exist?  Yes is the basic answer, and to find them you should make contact with all of the businesses in the local area on a regular basis.  Over time you will find the good tenants, and those that want to move to other quality properties.  Most businesses stay within the same general location when they relocate, so they can take their customer base from property to property.