Every commercial real estate market has opportunities to sell and lease property. Even in this changing time of economic challenge. It is just a matter of adjusting your prospecting processes and identifying the opportunities that exist with existing properties. Rest assured that every commercial real estate market will go through dips and peaks in property performance. Right now, we are heading out of the dip and towards a new cycle of property investment. Some forecasters are saying that the next cycle will be approximately 10 years long. History has proven this so many times.

So, what opportunities exist at the moment? Most Real estate opportunities particularly it is the leasing of commercial property to those businesses that are active and growing. They are seeking new premises for expansion and relocation. They require premises for the growth of their industry or business as we move out of this economic cycle.

In achieving a successful lease transaction today, it is not so much the rental that you strike at the beginning of the lease that makes the deal successful. It is the escalation of the rental and the duration of the lease that are far more important as the lease proceeds. The rental in the next few years will position the property for future sale or changes in financing. The financiers and mortgagees like properties that have a solid rental profile and a stable tenancy mix.

Another aspect of lease establishment today which needs careful consideration as you negotiate is the level of incentive offered to attract a successful lease outcome. In reality a lease incentive can be just about anything of value. Importantly the landlord must get back the money that they outlay for the incentive. The only way to do this is through the rental structure over the term of lease. The incentive can be recovered through the rental escalations’ growth structure.

Also consider options in the leasing strategy, and as some landlords are quite happy to give options for a further lease term. These options should only be given after careful consideration regards the plans for the property. Lease options can be an expensive element of negotiation when you want a new occupancy deal or redevelopment proposal or expansion of the property. Essentially you have to pay out the lease options to the relative tenant.


So, the successful real estate agents today are looking for properties with a real future. They should be properties which offer attractive leasing packages in a vibrant and changing tenancy market. Keeping in contact with major businesses throughout your region is an essential element of market intelligence. These tenants and businesses will tell you so much about neighbouring properties and neighbouring businesses. The agent that has established a significant database of tenants and businesses locally, will be the agent that does many more transactions in this market.

Your point of difference in this market should be to provide creative leasing packages for landlords that are operating properties under pressure. Providing property stability through stabilised cash flow with long term leases and a selection of high-profile tenants will always provide a better property for the future. Support this with a well-designed lease that incorporates the landlords’ strategies of investment.

The commercial real estate market will now start to respond to opportunity. Intelligent observation regards leases and business change will always give you a serious source of new listings and new transactions. That means more commissions and a better market share.


Categories: Business