This year as commercial real estate agents we are likely to see an abundance of vacant space in many locations. The older buildings will be more difficult to lease as they continue to offer less convenience and less functionality for the tenants looking for space.
It is a tenants market in most locations; the tenants can ‘call the shots’ when it comes to the deals and negotiations. This is where an experienced agent comes to the fore; they know the way to handle difficult deals given the levels of current property enquiry.
Tenants in office property today look for:
Best location for business profile and access for staff and customers. The location allows them to operate efficiently and professionally.
Proximity to their end markets and customers will be a priority for many. That is why we see so many businesses located in precincts adjacent to cities and population zones.
Transport access will be a focus for some tenants if any of their staff uses public transport or freeways and highways to get to work. Access and convenience are important factors in running a business today.
Modern buildings that give the best image for the business will create the best enquiry. Looks are everything so make sure that the premises present well.
Great services and amenities should exist for the comfort and use of staff and customers
Technology and communications systems to Managing Broker support their business will be important
Energy and outgoings savings are a factor of occupancy. Know what these charges are.
Reasonable asking rent should be set given the location and the comparable properties
Good car parking for staff and clients will always be important.
So what leasing stock do we focus on from an agency point of view? The answer is simple, the best buildings and the best locations that provide a good selection of the above issues. In any property market you will find that the best buildings will always create solid and qualified enquiry.
If you have an abundance of older and less attractive properties to lease, you are likely to do fewer deals in comparison to the other agents. Let’s face the facts; tenants can choose what they want and landlords have less control in the negotiation. If the tenants are not happy with the negotiation, they will simply find another property; there are enough around to choose from.
Landlords need to be more realistic about rental trends and lease enquiry. Aggressive high rents and inflexible lease terms will not produce the enquiry or the deals. The landlords that think they can ‘hold out’ for the best rent and then negotiate ‘downwards’ are only fooling themselves in this market; today the properties with the highest rents are not getting the enquiry.
So What Can Custom Home Builder Websites You Do?
To help with your business profile and agency market share, make it a priority to get more sign boards into your local property market as quickly as possible; every listing on your books should have a signboard located in a prominent position. Perception is a large part of creating enquiry today and the local business owners and property investors will see your agency as being more active than others.
As part of this process make sure that a sign run checking process is done at least monthly so you can check that the signs you have placed are still in location and are not damaged or removed. In aggressive and competitive property markets it is not unusual to see signboards disappear or get vandalised.