The best commercial brokers representing landlords generally follow a three-step leasing process.
Information gathering and pre-marketing is step 1 with the broker understanding the property objectives, completing a market review, developing a marketing strategy and creating marketing assets such as property videos, floor plans, and professional photography.
Step 2 is Marketing. Listing the property with videos, floor plans, and professional photos really help increase visibility and make the listing more professional looking than most. Great marketing boosts the visibility on platforms such as Costar and Loopnet. Using social media to educate and inform prospects is a great way to reach a more hip audience.
Step 3 is the transactional step. Evaluate the prospect, generating proposals and negotiating lease terms and conducting tours is ongoing throughout stage 2 and 3. The proposal to the tenant also known as the Letter Of Intent includes key business terms such as the length of the lease, rental rate, triple net charges, tenant improvement allowance, rent abatement, and exclusives. Working closely with the landlord’s attorney makes the whole process more clear and smooth. Understanding which terms are easy to agree on and which are non-negotiable takes time and experience.
A successful outcome is based on information gathering, setting objectives, creating marketing assets, communication and educating potential tenants, completing a non-binding letter of intent and finally executing a lease between tenant and landlord.