6 Ways NNN Properties Can Get (or Stay) Leased
- Feb 22, 2012
The current market is challenging for both tenants and landlords alike, but there are ways to make your net-lease building stand out from the pack and make an impact on potential tenants.
By Randolph T. Mason, CCIM, SIOR,
Commercial Realty Specialists
In these interesting times it is imperative for property owners to do what they can in order to keep (or get) their properties leased. While there are many tricks to the trade, these few pointers may speed up the process.
1. Be responsive to inquiries from potential tenants or leasing representatives. If an inquiry is made and there is a long delay to respond, that tenant or broker may just go to the next building down the street. I am finding that many inquiries come via e-mail, therefore being responsive should be relatively easy. Always considering attaching brochures, floor plans and access codes to lock boxes and anything else that will make it easy for a potential client. It makes a lot of sense to create a standard signature block on your outlook that would have much of above information. I am also finding communication via texting is increasing in popularity.
2. Have a combination lock box on the building if someone can’t be there to show it on a moment’s notice. Convenience is critical to clients or brokers when they want to view a potential building. It is not uncommon for a prospect to see a building and want immediate access. If they are able to call the sign on the building and get the access code, that betters your chance of leasing the building. If you’re worried about vandalism then consider having a motion-detecting camera installed inside the building where the recording begins once motion is sensed.
3. Consider offering an above-standard tenant-improvement allowance, brokerage compensation, free rent or other terms that could entice the client and their representative. I know of landlords offering leasing incentives of $1 – $3 per square foot in order to have their building stand out above the pack. Also, some landlords are offering touring incentives in order to get their building on the touring list by the tenants’ representative. If the broker has 30 opportunities to show a client, what can you do in order to get your building higher up the food chain?
4. Complimentary space planning services is on the rise. Many landlords will suggest a space planner lay out the building to help entice a tenant and to visualize what the building could look like should they become the occupant.
5. Many landlords are providing storyboards in the front lobby area or reception area that show building standard carpet and paint samples, along with hypothetical floor plans. This gives prospects an idea of what the building could ultimately look like.
6. Be aggressive with your leasing terms. Don’t be afraid to let the market know that you’re flexible in your rent, tenant-improvement package, potential moving allowances or other incentives that could entice a potential client to move into your building.
To be sure, this current market is challenging for both tenants and landlords alike. Landlords that realize this and understand the tenants’ issues, concerns and motivations are more likely to retain and attract tenants. There is opportunity in all cycles of the market.
Randolph T. Mason, CCIM, SIOR, is the managing partner of Commercial Realty Specialists in Newport Beach, Calif. They exclusively represent tenants and buyers in complex commercial real estate transactions.