In commercial real estate today, the leasing of office premises is a relatively easy process to prepare for but accurate facts and property information are required. In many respects you will only get one chance to promote a vacancy for lease; have all the facts and information under control from the outset.
Real Estate Leasing Agents should help landlords move through the tenancy and property preparation issues so that the marketing of the vacancy can create real interest in the local area and with the targeted group of tenants. When you are prepared for the lease activity, time on market is shorter and lease negotiations are more direct; in larger office properties and in modern buildings you will also require a ‘tenant information memorandum’ to assist the leasing process.
Here are some tips to help that leasing preparation process occur efficiently:
- Get a plan created of the property and or the tenancy to be leased. You may also require a survey plan so that the lease area is totally accurate in preparation for tenant inspection and enquiries. If that is the case, get the survey done early so it is not a delaying factor in any lease negotiation. It is also of some help to the leasing agent to have an accurate plan of this type for the property and premises. The plan creation process is a cost to the landlord.
- Check out the boundaries of the premises and property; inspect the property comprehensively yourself. Ensure that there are no boundary or premises encroachments. Remove those problems before any lease marketing or negotiations start. Premises problems can slow things down considerably in a lease negotiation. Remove the problems at the start.
- Review the premises from a ‘tenant perspective’. Look at issues as any tenant would. Question things such as rent levels, lighting, floor coverings, wall finishes, lease conditions, and property availability. The property must present well in any inspection, so remove any visual problems and physical challenges that could have an impact on your inspections. Any problems that a tenant can see in the inspection are likely to be ‘discounting factors’ in any lease negotiation. Some landlords like to ‘hold back’ on the costs of premises preparation thinking that they can save some money or wait until a tenant is located; invariably that can be a big error as the ‘first impression’ that a tenant gets from the property will make or break any lease offer.
- The landlord should have considered and created standard lease terms and conditions that are required for any lease negotiation to start. Those facts will also be required in the marketing and advertising of the vacant premises. Ensure that the asking rent is in keeping with the comparable properties locally and the other asking rents in the area.
- Understand how the tenant will connect into the building services and amenities. That connection process will include water, lighting, electricity, drainage, and communications. There will be ‘risers’ in the building to allow the tenant to connect. You may also need engineering comment and ‘as built drawings’ to help that process occur.
Simple things like these help the momentum in any lease marketing process of an office building or office premises. Preparation is the key. Get the facts before you, know the property market, and then understand the client’s requirements and the property.