Every commercial real estate agent wants to win their sales pitch or presentation. The fact of the matter is that they will be up against a few agents chasing the same property and with the same client when it comes to most presentations. For this very reason, the sales pitch or the presentation needs to be of high quality and highly relevant. The days of the generic sales pitch are well gone. You really need to be correct the focused on the commercial or retail property, the client, and the market.
Every top agent will create a presentation that suits their style and property type. That being said, they will usually have some ‘opener’ which gains the attention of the client, and then allows the presentation to proceed productively and correctly. You can also achieve an opening statement or strategy that you can use in every property presentation. In this way, you will capture the attention of the client and draw them towards your recommendations.
When it comes to marketing commercial and retail property today, discounts and other enticements are always offered by competing agents. It is important as an alternative, that you offer real strategy and focus when it comes to your recommendations. In this way, discounts and enticements are no longer or perhaps less relevant to the client. They do not want to be an ‘experiment’ when it comes to property promotion. They want results so show them how you are going to do that.
Here are some tips when it comes to an opening strategy in any property presentation. All of these things can have some advantage depending on how you use them.
Meet the client at the property before the sales presentation. Tell the client that you would like to discuss the inspection process and their thoughts relative to that. Most agents will not do this. Tell the client that you want to show them how you see the property and how you will be recommending it as part of any property inspection to qualified prospects.
Take plenty of digital photographs in and around the property. For the typical property presentation, that would normally be approximately 40 to 60 photographs. Those photographs should be structured into a single folder within your computer, and then used as part of a ‘scrolling’ photographic display on your laptop when the presentation is underway. This strategy is highly effective and will gain the immediate attention of the client. The fact of the matter is that the client will always show interest in their property and digital photographs will allow that to occur. This process is much more effective than any other slides on your laptop. Forget about using PowerPoint computer slides, but use well selected images of the property that roll through a progressive slide show continually. As simple as it seems it will help win the attention of the client quickly and directly.
As part of any earlier meeting with the client, you should have identified some issues and problems that are of concern to the client. In most cases, you should be able to identify three or four factors of concern to the client. As part of a question and answer process in your presentation, put those factors into your proposal document and also your presentation. Give the client clear solutions to those concerns; show them the way through the problem and provide unique and relevant strategies to the process. In this way, you will show them that you really understand their needs and challenges. You are the agent to help them.
The marketing of every commercial and retail property should provide real solutions based on the property type and the location. Forget about generic advertising and marketing campaigns. Be quite specific in what you tell the client about marketing the investment property and how you will approach it. Give them three alternatives of marketing costing and strategy so that they have some choice in the matter of advertising and the strategy to be adopted.
There are other things that you can add to this list above. The main point of the process is that strategy is everything and relevance will help your property presentation stand out as the best available. Forget about providing discounts and incentives, tell the client exactly how you will improve their property challenge and resolve the problem as soon as possible. Be relevant in every respect.
When it comes to leasing a retail shopping centre, the mechanism of leasing can be quite specific and specialised. That is why some leasing experts only specialise in retail property. It is a very special part of the property market requiring good market knowledge and excellent tenant contact.
A shopping centre or a retail property is a vibrant business environment and it needs to be understood for the best leasing results to be obtained. To a great degree, the success of the tenants will be generated from property performance, tenant mix, customer interaction, and the landlords support. There are many ways that these issues need to evolve if the retail property is to succeed for the long term.
Here are some tenant mix strategies to apply to a retail shopping centre to assist the leasing process and the overall tenancy mix.
The tenants that are chosen for the property should be the tenants that satisfy the demands of the local community and customers. Tenants that are well matched to the local demographic will attract more customers to the property over time. Tenants of this type should be integrated into the overall tenancy mix at strategic places and within specific retail clusters. Clusters of tenants generate more sales in the property. A cluster is a specific retail tenant mix strategy.
Get to know the franchise groups in the local area that may require premises in your property at any future time. There will also be other franchise groups that are not yet located in your region or town. Connect with all the franchise groups that have a reasonable retail offering and therefore potentially an attraction to your customer base. Understand what these franchise groups require of a property, and population demographic. They will also have certain terms and conditions that relate to their lease occupancy and property selection. In many cases they will share that information with leasing professionals in preparation for identifying the right property. Get to know the franchise groups.
Monitor the activity of all competing retail properties locally. That will include the rental profiles, vacancy activities, and lease occupancy. Selectively approaching the tenants within these properties will help you with market intelligence and leasing strategies.
Identify any new property developments that are soon to be released on the market. They are likely to shift the balance of available space and rental across the region. They will also try to entice tenant movement through attractive incentives. That can then make any older properties in the area less attractive to some tenants. The only way to combat this problem is through competitive rentals, and exceptional property performance. Retail tenants will always be attracted to properties that integrate well into their customer base. Make sure your retail property does exactly this.
Your existing tenancy mix will contain tenants that are more or less attractive to the future of the property. You will require a tenancy retention program to define the differences between those tenants. Over time the retention program can remove difficult tenants, reposition better tenants, and reduce your vacancy profile. The tenant retention program is a significant business tool and point of difference for many retail leasing experts.
So all of these things will help you with the necessary momentum to improve your leasing activity; over time you can lift your tenancy outcomes. Respect the differences in retail property leasing, and understand the specialised nature of lease negotiation. Many commercial property agents have made a significant and very rewarding career from retail property. You can too.
When you lease a retail property or promote a vacancy to be leased, there is a fair bit of information to be sourced and set as part of the vacancy marketing effort. When you are fully informed and prepared, the retail leasing situation is much easier and more direct.
A retail tenant will ask lots of questions. They have a business to run and they need to know that the property can support their intended operations, marketing efforts, and trade.
The landlord that owns the retail property will have a lot to do with the overall success of the tenant mix and the levels of sales. Inexperienced retail landlords can destroy a tenant mix and retail property performance if they do not devote the correct focus on balancing key relationships.
Owning a retail property is a special process. The fine balance between the tenants, customers, property manager, and landlord should be protected and encouraged.
Some of the critical leasing factors in a retail property or shopping centre will include:
Levels of rental to be charged should be fair and reasonable in keeping with the existing and prevailing market rents. Far too many landlords set rent based on their need to finance the property or boost the property value. An aggressive rent can ‘kill’ the tenant mix faster than you would expect.
Types of rental will change from property to property but will include gross rent, net rent, and incentives. All of these rent issues require decisions based on existing market trends. Rental targets for the property should be set in the business plan for the property and be reviewed annually.
Tenancy space details will include area of the premises and configuration. Be careful in setting rent with narrow, long, and deep premises. When it comes to retail rental, it is the ‘frontage’ of the premises that sets the rent and sustains the customer interest.
Permitted use for the premises will be set based on the requirements of occupancy and the prevailing tenant mix. Decide what types of tenants you really want for the vacant premises. How will they balance the offering of adjacent and nearby tenants?
Existing tenant mix details should be reviewed. In doing that you can ascertain just what vacancies are coming up and how they will impact the zone of the property.
Supply and demand for retail space will change in the local area during the year. The impact of new property developments will also reflect in your market rental. Keep in contact with the local property development office to understand the new developments that may be coming up.
Car park information will include numbers of car parks and the access methods for customers and tenants. When it comes to retail property performance, the function of the car park will be important for the future levels of customer interaction and trade. In many respects, car parking today needs to be accessible, friendly, and secure. Customers will soon turn away from a property if car parking is too difficult.
Customer demographics and levels of trade will change throughout the year. Ensure that you understand the typical customer that comes to the property and the reasons why they do so. Those factors are likely to change throughout the year.
Signage rules and regulations will apply to particular tenancies. Any new tenant to a property should be suitably briefed on the signage policies that apply to shop presentation.
Landlord works and property improvements will be important issues to the incoming tenant. Exactly what will be provided to the tenant as part of the new tenancy lease? Will the lease for the tenant require special modification and allowances for unique tenancy improvements? What should happen at the end of the lease term with regard to premises make good?
Services and amenities to the property and to the tenancies will be important. All the expected facilities services and amenities should be well maintained and up to date. A property that is neglected when it comes to the maintenance of these issues will soon become redundant from the tenancy perspective.
Guarantors and the security deposit requirements will be parts of the negotiation process for the new lease. Decisions will need to be made regards the types of guarantees required and the amount of security deposit. These factors may vary depending on the tenant that you secure for the premises.
Fit out design and specifications will be important when a tenant is identified for the premises. Certain rules and regulations will be required to control the tenant during the fitout construction phase.
Outgoings and occupancy charges will have an impact on the tenant’s ability to trade. Review competing properties in the surrounding area to understand exactly the types of outgoings that are acceptable in the prevailing market conditions. Your property should be competitively positioned and not exceeding those charges in other properties.
Standard lease terms and conditions will vary from property to property and landlord to landlord. Those lease terms and conditions should be set prior to the premises being marketed. The landlord should consult with their solicitor to ensure that a good standard document is ready and available for use when the tenant is located. In most cases, the standard lease document will be modified for the existing tenancy and the requirements of occupancy. If you locate the franchise tenant for the property, it is likely that they will bring their standard lease to the negotiation. If that is the case, the landlord for the property will require legal assistance to shape the franchise tenant lease into something that works for the landlord and the property investment.
Property as built drawings will be very handy when it comes to tenancy negotiation and tenancy design. The as built drawings would normally be available through the property management office and or the landlord. The drawings will be required to help the tenant to understand tenancy design and the availability of mechanical plant and hydraulic services.
So the leasing of a retail property or premises within in a retail shopping centre will be quite a specific task requiring detailed information. When you prepare for the process of retail property leasing, negotiations can run more effectively and positively.
When you work in commercial real estate, you will see those ‘retail specialists’ in the local area that focus within the retail property market. Those retail people are very specialized given that their property type is quite specific and heavily geared to the local demographic.
In simple terms, a retail leasing specialist or property manager should help retail tenants improve their business and on that basis improve property occupation. When all of this occurs correctly, the prevailing market rental for the property will be underpinned and potentially grow. Over time this will also help the landlord for the property achieve a better price if and when the property comes up for sale.
So there is a significant link between tenant selection, retail trade, property leasing, and property performance. For this very reason those of us in the industry that understand retail property do so at a very high level and can talk across a large variety of strategies that relate to retail sales, leasing, and shopping centre management. The clients that we work for and especially those that own any complex retail property will only work use the best retail property people in the industry.
There are many things that should be considered and consolidated into your retail experience and knowledge base.
Market rentals will change from property type to property type. They will also change by location within the property. The positioning of a tenancy inside a retail premises will dictate the levels of rental, as will the size of the premises. There is no fixed and firm equation that can be provided to help you here, except the process of gaining market awareness and information from comparable properties. Over time you will understand what makes a property location different than others. You will also understand the priorities of tenancy location that will boost the rental in one particular spot or one particular property.
Different businesses can pay and absorb different levels of rental as part of property occupation. As a case in point, you will find that one tenancy type can pay more rental than another tenancy type. For example you could compare a shoe repair type tenancy to a food type tenancy. The levels of rental from each will be completely different for the same shop location, given that they will have separate levels of turnover relative to their business type. If the rent is too high for the business type, they will simply disappear as a tenant.
Different retail leases and different lease strategies will occur all the time. You become a strategist when it comes to utilising rental incentives, gross rent, net rent, lease terms, rent reviews, and option strategies. All of these are negotiated with due regard to the plans of the property owner, the age of the property, the tenant, and the demographics of the shopper.
When it comes to retail property, the success of the tenancy mix will largely be driven by the demographics of the area. Stay on top of the changes to the local property demographics and ensure that the property matches the current and future needs of the local community. That being said, you really do need to know exactly who your shopper is and why they visit the property. You also need to know what they require and when they need it.
Tenant enquiry for new premises will change from time to time based on the regional and local business sentiment. For this very reason, you should be staying very close to the retail businesses and franchise groups. All of those people in your database should be contacted regularly to identify any changes in leasing needs or opportunities.
Watch the activities of any competing retail properties in your area. That will include the tenancy mix, expansion and contraction factors, refurbishment, and relocation challenges. These trends and activities will give you some leverage in leasing and property performance.
Retail property people are specialists in their property craft. Their knowledge and expertise will be sought after when it comes to the larger shopping centers and the bigger retail leasing needs. Franchise groups and anchor tenants will also seek the assistance of retail property specialists.
When you lease a commercial property as a real estate agent, there is a temptation to pass the transaction over to a solicitor to complete and finalise. The temptation is more relevant and real when you are very busy as an agent on a number of properties at the same time. The reality of the situation is that you must stay with the negotiated transaction to the very end after all the monies have been paid and a transaction has been completed.
It is very common for the property transaction to derail for a number of reasons. When solicitors get involved on the parts of their respective individual customers, the priorities and guidelines of the original deal can become the centre of a debate. As the real estate agent who did the deal, you need to stay with the transaction to the very end.
Here are some guidelines that can apply to the standard leasing transaction that you could negotiate. Develop a checklist for the process and modify the checklist for your local area taking into account special property conditions and the prevailing property market.
The lease that is created should be in keeping with the original terms of the negotiation. It is likely that the lease will be debated between the parties when the document has reached a final form. Ensure that all the parties sign the document correctly and in the right order.
In some circumstances there can be other documents and disclosures relevant to the original lease. They may be disclosures, licences, car parking agreements, naming rights, and other documents. A special note should be made regards retail property; this property type is quite unique and special when it comes to leasing. A retail property transaction will normally have extra disclosures and statements regards occupancy costs and lease arrangements. Check out the local legislation relative to property in this regard. You cannot negotiate something if you do not know how to document the final agreement.
When a lease document is signed, ensure that all the necessary monies are paid in keeping with the transaction. They will normally be rental in advance, deposit monies, bonds, and bank guarantees. Those monies should be cleared at bank prior to any occupancy being given and the keys handed over.
If the tenant has any special needs or requirements relative to the new lease fitout design, they will need to enter into some dialogue with the landlord and or building authority regards lodging plans and drawings, together with the approvals for the building or tenancy modification. The as built drawings within the premises will be of high value to these discussions. Get copies of the as built drawings from the property landlord.
When a tenant has been given access to the premises, it is quite important to remain in contact with them for a number of weeks in case the occupancy arrangements are a problem. The property manager or the landlord for the property will also have an involvement with the tenant to minimise difficulty.
So the message here is for the negotiating commercial leasing agent to remain in contact with the tenant and the landlord throughout the lease transaction, and even after its completion. In this way you will maintain the momentum for the transaction on behalf of your client. The end result will be a good commission.
A commercial real estate agency wants to dominate the market and create a solid market share. Whilst this is a worthwhile goal, it is also a challenge to achieve. There are many variables that will have a direct impact on the performance of the agency.
Some of the most frustrating aspects of managing and running a commercial real estate agency today relate to the skills of the salespeople. Finding salespeople to work within the business is one thing; finding great salespeople is really hard.
Some salespeople will seek to improve their business performance and drive better market share. Over time their income and listing profile will rise. Finding the right salespeople with this mindset can always be a challenge; the top agents of the commercial real estate world are diligent and driven. They know how to drive market share. They are prepared to call landlords, tenants, property owners, and business proprietors.
Here are some tips to help you build your market share as an agency or as a salesperson.
The traditional signboard placed on property listings for sale or for lease is perhaps one of the most important marketing tools that you can use. It is cheap and it is a very effective visual marketing tool seen by all of the property owners and business proprietors in the local area. Invariably, the top agents will have a strong signboard presence in the local area. As a priority, seek to get signboards on all of your listings as quickly as possible. When you place a signboard on a property, directly market their property into the local area personally. That means calling in on property owners and business proprietors to talk about the new listing. That simple activity will increase your market intelligence significantly.
The best listings to work on are exclusive listings. So often I hear agents say that they cannot achieve or attract exclusive listings. Top agents convert exclusive listings more than open listings; they do this because they are good at pitching and presenting their services. They are also well known through the local area as experts at what they do. Exclusive listings give you control of your market and the client; in this way you can achieve a better result over time. If you cannot easily convert exclusive listings, look to improving your knowledge and relevance to the clients that you act for. Seek to specialise, as this will help you build your exclusive listing profile. Practice your skills in presentations and pitching.
The Internet is well established as a critical component of commercial and retail property marketing. Most generic agents simply list a property and place it on the Internet hoping that the Internet profile and exposure will generate enquiry. There are many more things that you can do with the Internet to improve your listing performance, enquiry rate, and personal profile. Social media, article marketing, and blogging are very relevant and are highly effective tools when it comes to commercial real estate marketing.
The database that an agent utilizes will be the foundation of future business. Each agent or salesperson should be working with at least 600 prospects in the local area. The only way you can manage and work with such a large number of prospects is through an effective and up to date database. Managing the database should be a personal strategy and process that you undertake at the end of each day. Don’t to delegate the process to some administrative person in your office; failure to take ownership of your database will destroy your market share.
Cold call prospecting should be first on your agenda each working day. Contacting at least 20 to 25 new people at the start of every working day will help you improve market share radically and quickly. The other half of your prospecting process can be with people that you have made contact with previously. Balance your prospecting equally between new people and established prospects.
The secret to building market share as a good commercial real estate agent is in the systems and the consistency that you establish. Random actions produce random results. Develop your system including some of these critical items above.
If you want to get some more tips on how to find tenants to fill your vacancies in your properties, you can get them in our Newsletter.
When you lease a retail property or shopping centre, understanding the retail tenant’s needs will help you significantly when you try to close a deal or lease. Retail tenants are quite special when it comes to occupancy; you need to know a lot more about them that the average office or industrial tenant.
Here are some ideas to help you work with retail tenants and fill vacant tenancies in your property:
They will have an ideal shopper demographic for their goods and services. What or who is that shopper and do you have plenty of them in your local area? Is that demographic changing in any way?
You may find that the retail tenancy is part of a franchise group structure. That can be a good thing because the tenant coming into the premises will have an established business plan and retail support.
What shop size will the retailer require? Will that shop need to be on a corner point, internal to the shopping centre, or on a higher foot traffic zone? Some retailers have to be in particular areas to make their expected sales. That being said, a successful retailer will bring other shoppers to the area and help boost sales for tenancies nearby.
What improvements will the tenant require in the shop? Some of those improvements could be a landlord expense to get the tenant to commit to a lease.
Visit some other shopping centres in the local area so you can understand just how successful some tenants and brands are in trading and in established tenancy mixes. Look for the synergies between tenant types and locations.
Each established and experienced retailer is likely to have a series of lease requirements that they will negotiate with the landlord for each property. Some of those terms and conditions will be non-negotiable as they have an impact on the way the tenant does its business. Get a copy of the standard lease conditions that the retailer believes are critical to their business.
The common areas within a retail property may add to the sale potential for some tenants. A food court is a good example of this synergy and need. Visit some other food courts or similar areas and understand what works and why. If a customer can spend more enjoyable time in a property, they will likely spend more money.
Presentational factors in a retail property are more important than in any other property type. Retailers know when the landlord is cutting corners on maintenance to save some money. Eventually the poor property presentation will impact the customers and shoppers coming to the property.
Transport corridors and roadways will have an impact on the way people get to a retail property. If the process of access is too hard, the shopping centre can lose trade fast.
Public transport to or near your property will be a great advantage. How do people get to your property now and is it efficient? Be aware of intended changes to roadways and highways; one small roadway change can impact your property in a big way.
Car parking is always important to retail trade and shopping centre success. In some locations that car parking should be under cover and convenient. How big is your car park and is it convenient for users or shoppers to the property?
As mentioned earlier, and as you can see from the information above, the retail property and shopping centre is a really special property in function and operation. Lease the property carefully and get to know all the retail tenants very well.
When you manage or lease retail property or premises within a shopping centre, it can always be a challenge to find the right type of tenants for the vacancies as they arise. It is important to stay ahead of your vacancy problems and challenges within the tenancy mix.
If a tenant is nearing the end of their lease, it is simply a matter of them vacating the premises or a new lease being created. If you work 12 months out from the event, you can plan whatever steps are necessary to resolve the vacancy quickly and effectively.
Here are some tips to help you with finding tenants to lease retail property:
Monitor the activities of other shopping centres nearby. They will have some tenants looking to move or change premises for a variety of reasons.
Keep in contact with all the franchise groups through the region and nationally. They may be looking for new premises for another franchise tenant location. That being said, you will need to understand the lease requirements and lease documentation standards that apply to each franchise group. It is likely that the lease documentation will be different to that which the landlord would normally use.
Create a retail leasing property update newsletter. This newsletter can be circulated through the retail business community in your local area. In the newsletter you can provide tips and ideas regards leasing new premises. Given that most businesses have Email contact, a newsletter can be based on the use of an auto responder and an Email System.
Maintain regular contact with all the businesses through the local area. Have particular focus on the successful businesses with strong branding. Give them regular property updates so they can understand the changes in rental and incentives as they apply to retail property.
The anchor tenant in your retail property will have a significant impact on customer visits to the property and the trade for the specialty retail tenants. A good anchor tenant will also attract new tenants to your property. Encourage the anchor tenant to interact with all the specialty tenants in the shopping centre.
A shopping centre that is well maintained and marketed to the community, will be of attraction to new tenancies. Ensure that your property satisfies both of these issues. Establishing a productive marketing campaign to attract more shoppers to the property through all of the trading seasons.
When it comes to leasing and managing retail premises, early lease negotiations and preparation for any new tenant vacancy, marketing, and occupancy are key strategies to adopt. A retail property is a vibrant and yet challenging type of property investment. Work with your tenants at the earliest possible time, and you will find good results for all concerned.
In retail real estate and investment property your leads for new business come from a number of sources. The more leads that you can generate and optimise, the more successful you will be in getting the best listings.
In this market, the quality of the listings and tenants is so important given that the shopping centre and shopping mall buyers and the tenants can be so selective.
When the market is saturated with owners and businesses that are struggling to keep afloat, it is the quality retail properties that you want to market. These are the ones that will generate the momentum even in difficult times. The banks are also not as reluctant to lend on the higher quality asset with established cash flow.
Does this mean that you turn your back on poor and unattractive retail real estate listings? Perhaps you should for this time given that you want results to your marketing. It’s your choice, but at the very least, be selective as to what you list and how you do it. Your time is your only resource and how you use your time is essential to generating fresh and marketable listings.
What are the Sources of Leads?
We cannot cover all the sources of commercial real estate tenant and property leads here as they are unique to your market in many respects; however it is worthwhile raising the main common ones so that you can have them covered. Importantly you must know what a lead or source of new retail real estate business looks like in its early stages, and then you must know how to convert it to fresh momentum and a deal.
There is one main rule on the topic of leads; when you see a lead, you must react to it in a professional and timely fashion before someone else does.
Leads in retail real estate are not just for the things that happen today; they can be for things that are potential deals in months or even years. The more clearly you see this, the further business you will generate for yourself.
So here is the most obvious leads generation list that you must have covered in one form or another. See how you score on these items and make sure that these foundational matters are under control.
Business Acquaintances locally – these are most particularly those people that you have known for some time and who are likely to cooperate as an extra set of eyes in the market place. Choose of these people with care and remain in contact with them constantly.
Professional Business People – in your marketplace, there are a number of categories of business people to whom you must remain connected. The highest on the list are solicitors, accountants, town planners, financiers, architects, local politicians, and engineers. All of these people have significant involvement with the retail property industry and the property owners. They will likely hear about a retail property or lease transaction before you do. In many cases these people need the assistance of a good retail real estate broker to help their clients in a variety of ways.
Local businesses – local businesses produce change and flux in the marketplace. As time progresses, you should constantly encourage ongoing contact with all the major businesses in your precinct. They are the ones that regularly need to buy, sell, and lease retail premises; this means all the local managers and business proprietors who are involved in property decisions and creating commerce generally in the community. Recognise that they do not normally know much about commercial real estate. You can bring them updates on rental and property prices regularly to assist them with a future property need.
Colleagues within your office – many real estate offices are cooperative business environments with salespeople working productively with each other. This means that they share retail property leads and opportunities in sales and leasing. Sharing part of your commission with other colleagues in your office is far better than giving the commission to another outside competitor an agent in the same region.
Building tenancy schedules – from time to time, you will see or obtain tenancy schedules or inventories that relate to major retail buildings and shopping centers in your area. Whilst they should be regarded as confidential documents, they will give you a wealth of opportunity if used correctly. Any lease that is to expire inside the next three years is a target for future contact. The relative tenant will need to do something to preserve the function and occupation of their business. It is surprising how many tenants leave such matters to the last minute. The ongoing contact with retail tenants of this type is highly productive. Your main focus with these people is to establish trust so that they come to you when they need you.
Competition agents and brokers – normally speaking, the competitor agencies in your area will cooperate on conjunction transactions with their exclusives. The retail real estate industry is relatively specialised and such cooperation is common in sales and leasing of retail property. Importantly, any conjunction arrangement involving other agent’s listings must have a completely signed and documented conjunction agreement before you proceed. Cooperate with other agents, but do so with care and professionalism.
Satisfied clients – your agency business, if it’s been operating for a number of years, will have a significant list of established happy clients from previous retail property and lease transactions. It pays to keep in contact with these people given that most transactions in commercial real estate happen every 4 to 10 years. The satisfied clients are going to need your services again.
Old campaigns – any retail real estate campaign and marketing event will have created leads and people that ‘changed their mind’. All of these people should be on your constant contact register or data base. Feeding them regular market updates is essential.
Other Agents old deals – as a further extension of this item above, you can also monitor the transactions of other competing agents in your area. Any transactions that occurred through other agencies over the last 4 to 10 years should be monitored for future re-activity. It is interesting to note that many real estate agents and brokers are lax when it comes to keeping in contact with others.
Industry publications – any newspaper or retail industry publication in your area should be reviewed daily for information involving businesses relocating, expanding, contracting, or merging. It is surprising how so many agents overlook this obvious source of listing. These publications will also frequently name the key people in a business such as the CEO, President, or CFO. In all cases these business leaders go on your contact list and get a letter on a regular basis. Note that I said a ‘letter’ and not an ‘email’. In this high tech world you want your correspondence to be seen and read; an email will not achieve this in most circumstances.
Other agent’s signboards –when another agent puts a signboard on a retail property, it is imperative that you contact the other adjacent and nearby owners of commercial property in that street. These people are likely to have an interest in competing with the retail property that’s just come on the market. They are also more likely to use you as a competing agent whilst the other agent’s property moves through its promotional period.
Financiers and bank managers – these people need property transactions for their business to survive. They are also receptive to working with professional real estate agents who understand retail real estate and act professionally. If you can supply them with the source of a new large mortgage or retail property development, they are likely to offer you the opportunity for a retail listing or a sale with their clients in the future.
Planning approvals – keep close to the local council or office of the planning committee in your region, as they constantly consider new planning matters. Some of these offices have minutes of planning approvals that are available for public scrutiny. Check out these minutes and follow through on the opportunities that you can see. The historic planning approvals over the last few years are also great sources of retail leads and listings.
The inventory above comprises the most obvious categories of leads and opportunities in retail shopping centre sales and leasing. You will be able to add to this as time progresses in your marketplace. Importantly make sure that you have these items well under control as the essential foundations of your business.