Retail Leasing? - Posted by Bill Taylor

Posted by Killer Joe on March 22, 2006 at 01:34:44:

Hi Bill,

Just some food for thought from someone who has leased commercial properties since 1977. I have two of them now. One since '91, the other since '99. So this will be from the point of view of the leasee. They have a big impact on the outcome.

As a leasee I don’t put a lot of weight on HOW I found the property, only that I found it. Once a property is brought to my attention all the focus is on ‘how is this property going to satisfy my needs’. Those needs very by the business housed by the property. And by a WIDE margin. Also, you should be clear that a need must exsist with the leasee PRIOR to finding or locating or hearing about a property. After more than a dozen properties in 29 years I have never leased or rented a location I didn’t already have a need for.

Here’s some things your leasee will care about…

The location has to satisfy a number of important issues, and that location can float geographically all over the place, or it can be narrowed to a finite dot on the map. I currently have one of each. A world class location may catch the eye of the big boys, but its pulling power on small businesses can be overshadowed by the big picture, or should I say small picture. I mentioned location first, but in the real world it can be the last item that sways your decision to lease a certin property.

Another thing that is at the top of my list is WHO are my neighbors going to be. Here’s what I hate the most…I lease a location that meets all my criteia, and the next tenant who leases (my new neighbor) is at odds with one or more core values of my business. This happens a lot in the real world. I hate it. So guess what, the flipside is true as well. If you rent to a business that is in conflict with one of my core values prior to exposing me to your property, I may see the property as a fit, but I may not, however, like the mix.

I previously gave you some thoughts I had regarding leasing agents. Summing it up here, I have found leasing agents who introduced me to a property, believe they have a first mortgage on me being a client. The leasor holding a second. The leads you are providing your leasing agent will in all likelyhood be shown all pertinant properties the agents are trying to move. That’s what they do.

Bottom line…all your efforts geared at finding tenants will have some effect. If your ‘prospecting’ finds the eventual tenants for your property, or leads your leasing agent to finding somebody that raises their hand for one of the ‘other’ properties, how can that hurt? If you’re happy with comping your agent with leads, and he’s saying “bring 'em on” where’s the foul. Just be sure when the fat lady sings you’re happy with the outcome.

Btw, thank you for posting updates about this project. I hope I haven’t made a pest of myself :slight_smile:


Retail Leasing? - Posted by Bill Taylor

Posted by Bill Taylor on March 21, 2006 at 22:02:21:

I just bought a 30000 sq ft building brand new 10% rented. The developer and I contacted a leasing agent to work on leasing. They are located in Indianapolis and I think they spend a lot of their time working with local businesses that might expand from one place in Indy to another place that we have in Indy. My thought is that there are other local businesses outside the area that they work about 30 minutes away where I live. I have been kind of a pest maybe but I am giving them leads every day of businesses that I think might expand. I am calling these businesses and finding names that they may call to work with. Am I being overstepping what they are doing or is this a good way to get things moving with them. So far they have been suggesting to keep the leads coming but do you think they are just humoring me? I want this thing rented and will help in any way I can.

Re: Retail Leasing? - Posted by john

Posted by john on March 22, 2006 at 18:16:27:

A good way to get the leasing company motivated is to provide them a financial incentive in the contract to get the deal done. Maybe a bonus if it’s leased within 30 days. Touch base with them once a week and ask them how’s it going, whats in the que? What are you doing or how can I help if your time is limited.

Re: Retail Leasing? - Posted by jlaass

Posted by jlaass on March 22, 2006 at 10:48:17:


Does your listing agreement with your agent allow you find and lease to the tenant w/o paying the listing agent a commission? Maybe listing agreements work both ways where the agent receives a commission no matter who found the tenant while others allow the owner to not pay a commission if they found the tenant. You should have your boiler plate lease already in place so that you and/or your attorney can fine tune it to the tenant.