Hiring a commercial real estate broker is about much more than putting a property online and waiting for inquiries. A good leasing process starts with understanding the property, determining how it should be positioned, preparing it for the market, reaching potential tenants and managing the conversations, tours and negotiations that follow.
At Right Space Commercial, our goal is to handle that process for the property owner so they are not managing every question, showing and negotiation themselves. Here is what that process typically looks like.
Step 1: Establishing Pricing and the Leasing Strategy
Some property owners already have a specific asking rate or lease structure in mind. Others want guidance on how the property should be positioned.
When needed, our team helps evaluate pricing and lease structure based on factors such as:
- Location
- Property type
- Condition
- Layout and features
- Current market demand
- Competing available properties
- The types of businesses most likely to use the space
Commercial tenants tend to evaluate properties analytically. The property has to make sense for the business, and the numbers have to work.
That makes appropriate pricing and positioning especially important.
Step 2: Learning the Property
After the listing agreement is signed, our team tours the property in person. We want to understand more than the square footage and address. We look at the layout, access, visibility, parking, loading, existing improvements and other characteristics that could matter to a prospective tenant.
We also gather the information needed to properly market the property, including floor plans and photography. Property photos are professionally edited before they are used in marketing materials so prospective tenants get a clear and accurate presentation of the space.
Step 3: Preparing the Property for Market
Once the property information and photography are ready, we begin creating the materials needed to market it. That typically includes a property brochure, signage and online listing materials.
If we believe the existing condition of the property could make it more difficult to lease, we may also recommend improvements before or during the marketing process. That does not necessarily mean a major renovation. Sometimes relatively targeted changes can make a property easier for prospective tenants to understand or envision for their business.
Step 4: Marketing the Property Across Multiple Channels
Once the property is ready, we distribute it across the channels that make sense for that particular listing.
Depending on the property, that can include:
- RightSpaceCRE.com
- LoopNet
- Crexi
- West Alabama MLS
- Greater Alabama MLS
- Google Business Profile
- Email marketing
- Social media
- Property signage
- Direct outreach and existing broker relationships
Not every property needs exactly the same marketing strategy. An office suite in Birmingham may require a different approach from an industrial property in Tuscaloosa or commercial land elsewhere in Alabama.
The goal is to put the property where the right prospects are most likely to see it.
Step 5: Handling Inquiries and Tours
Once inquiries begin coming in, the property owner should not have to manage every phone call and showing. Our team handles prospect communication, gathers information about what the business needs and schedules and conducts property tours.
We also try to determine whether a potential deal is viable before bringing it to the owner. That can mean understanding the prospective tenant's intended use, space requirements, business needs and proposed deal terms. Our goal is not to send the owner every question that comes through the door. It is to work through the details and bring them opportunities that are worth considering.
Step 6: Negotiating on the Owner's Behalf
Commercial real estate negotiations can involve considerably more than agreeing on a monthly rental rate. Lease term, improvements, commencement dates, concessions and other business terms can all affect whether a deal makes sense.
Our team handles those negotiations on behalf of the property owner. Once we have a potential deal, we present the terms to the owner. The owner can approve them or provide direction on what they would like changed, and we continue negotiating from there. The owner remains in control of the final decision without having to personally manage every stage of the negotiation.
Commercial Leasing Is Usually About the Numbers
One of the biggest differences between commercial and residential real estate is how properties are evaluated. Residential buyers and renters can become emotionally attached to a particular home, while businesses are typically more analytical.
A company may like a property, but the decision ultimately has to work financially and operationally. If the rent, improvements, layout or other deal terms no longer make sense, a prospective tenant may have little reason not to move on to another option. That is why commercial leasing requires more than attracting attention. The property, pricing and negotiated terms all have to support the needs of both parties.
Existing Relationships Can Matter Before Marketing Even Begins
Sometimes a broker's existing tenant and prospect relationships can create opportunities before a property ever reaches the broader market.
We recently saw this with Unit 10 at Northview Plaza in Northport, AL.
Because our team was already familiar with businesses looking for space and the demand within the property, we were able to secure a tenant before the suite was publicly marketed.
Not every property will lease that quickly, but it demonstrates an important part of commercial brokerage that is difficult to replicate by simply uploading a listing online.
A broker is constantly learning what tenants are looking for, what properties are becoming available and where those needs may overlap.
Why a Full-Service Perspective Matters
At Right Space Commercial, leasing is only one part of what we do. Our team is also involved in commercial property ownership, property management, construction and improvements, sales and ongoing tenant relationships. That gives us a broader perspective when evaluating a property or potential deal.
We understand what improvements can cost because we deal with construction and maintenance. We understand the owner's side because we own and lease commercial properties ourselves. We understand tenant needs because we work with and manage a large number of existing commercial tenants. And we understand what happens after a lease is signed because our involvement with many properties continues through management and operation.
That experience allows us to look beyond simply getting a lease signed. We can evaluate how the property, tenant, improvements and deal structure fit together.
Considering Leasing Your Commercial Property?
If you own commercial property in Alabama and are considering leasing it, Right Space Commercial can help evaluate the property, develop a leasing strategy, market the space, handle tours and negotiate potential deals on your behalf.
Our goal is to make the leasing process easier for the property owner while helping create a deal that makes sense for everyone involved. Contact Right Space Commercial to discuss your property and learn how our team can help.
