If you post and hope, this blog is for YOU! Don’t fall for these common commercial real estate leasing myths.
This is the first blog in a series of blogs about CRE Leasing myths debunked. We’ll cover Posting and Hoping, Somebody Else Will Lease My Property, Weekly Reporting is Enough, and the well-known Taking Tenant Reps to Lunch.
This series will explore these common myths and shed light on what you should focus on when it is your job to get a commercial property leased.
The Old Days
It seems interesting to me how we have “learned” to market our properties for lease. When you listen to the “old-timers” they tell us how they used to tour and walk every building in the city, stack every tenant and then add the tenant name and the contact to an index card so they could contact them to lease space in their building. Well, it was daunting and painful, but they were on the right track. It is called target marketing.
Do you hear about leasing agents doing that anymore? I don’t, not even digitally! With the amount of data that is on the internet, you know the thing that Al Gore invented, you would think that more leasing agents would focus on finding out who was in the competitive properties, they would look up the contacts for that company, and add the contacts to their marketing campaign, right?
The New Days
It seems like over time we have given up that task to brokers that represent the tenant. Most leasing agents just post their space online somewhere and hope that someone finds it! Last time I checked, hope isn’t really that great of a marketing strategy! You need to be aggressive and think about how much rent your building owner is losing every minute of every day you are not actively identifying prospects! Yes, it is your job as the landlord’s representative to attempt to identify your target market audience and market to them.
For example, one such avenue identifying the tenants in your competing properties, like the old-timers would do as they pounded the pavement. Today it can be done with technology and databases! Remember the tenants have already made the decision to be in the area for any number of reasons. You just need to sell the tenants the benefits and value of moving to your property!
Another category is tenant profile type. Have you done a survey lately of the make-up of your tenant profiles? Are you currently leasing to attorneys, non-profits, marketing companies, etc. What is your ideal tenant and what industry is your tenant mix made of? That information is another way to target tenants that would fit your building because there is already a compelling reason why they are moving into that location.
Myths About Leasing Your Property
“Posting and Hoping” is a marketing strategy! Yes, and it includes only using on-site signs or digital signs, like posting on tons of listing sites and just hoping! I totally understand that with all of the technology that has been made available for the commercial real estate industry recently, it is a bit mind-numbing to figure out which technology tools can really help you lease your property. But, it is your job to figure that out too!
Let’s Debunk These Myths!
If you look at a real marketing campaign, “Posting and Hoping” is just the beginning of the campaign. It seems that once you have your data in the right site, you will be able to develop your campaign to market your property, let your team members all have continuous visibility to that campaign, meaning that the leasing agents and the ownership have documents stored and available for use in launching a marketing campaign, and then the technology platform automatically tracks and reports on the results of the campaign. An effective system should be able to send out email campaigns to prospective tenants of competitive properties, and tenant representative brokers, and then track those emails to see who opened them and identify prospects that need to be contacted to discuss their space needs.
So the goal is to use tools that permit a collaborative approach to leasing your property. For instance, why not have the ability to blast out a marketing campaign by sending emails and marketing materials directly to real prospects and brokers that could lease your space? With today’s technology it is now possible, so don’t just post and hope, but look for tools that permit you to incorporate target marketing and CRM-like follow up tools to get your building leased.
“Successful People Do What Unsuccessful People Won’t.”
Image Lightbulb Hope Indicates Want Wanting And Hopeful Stock Photo Courtesy of Stuart Miles FreeDigitalPhotos.net