Today there are significant numbers of tenants looking for commercial property for lease even when the market appears tough or slow. Matching the right tenant to the right property is the job of the experienced real estate agent that knows the local area.
Now many an agent will claim that they really know the area and that they have the best commercial properties on their books. I like to ask them to prove it; that’s when the facts come out.
Landlords are well advised to seek the best agent with the best database of tenant enquiry when they need to lease their property. It is a fact that many an Agent has a database, but the database is relatively neglected or not optimized. There is a lot of difference between prospects and clients in a database that are contacted regularly and supplied with good reliable property detail, versus lists of unqualified names that really do not want to be contacted. Clients should ask their Agents just how relevant the database is to the property in question and just how up to date the database is.
A commercial property lease is structured around a number of factors and decisions. These ideas will help you:
- Ensure that the tenant has an established history of occupancy and business success. If they have been renting another property, then you can talk to their previous landlord or the property manager involved.
- The plans of the landlord relative to the property holding need to be considered before you negotiate a lease. In older properties, this becomes more significant and important. The age of the property will require refurbishment strategies around which the leases should be structured. If a property development is planned, it will be necessary to put renovation and relocation clauses into the lease. The right recommendations need to be made here.
- That commencement of the lease should be based on market rental evidence for properties of that type. Look at the entire list of comparative properties in the local area to ensure that you have consistent market rental evidence.
- Understand what a good lease should be in the prevailing market conditions. That decision will also be relative to the tenant type and your target audience.
The payment of outgoings will be important to the landlord in the future of the lease. On that basis it will be necessary to consider the best type of rental (net or gross) to help the landlord recover outgoings. It should be said that the outgoings to be recovered should be in balance to other properties of the type that you are marketing.
These are all simple facts that are so important to the leasing of commercial property today. When you really know what is going on in the local area you can put together a great lease deal that attracts the right tenant on a good rental package.