Are Your Tenant Prospects Fully Qualified?
These 10 Key Questions Will Help You Determine:
Use this checklist of 10 questions and incorporate into your daily process:
1. What specifically are you looking for in a retail property?
2. What is the USE?
Ultimately it is the Landlord’s decision to make for each Use, therefore, it is a good rule of thumb to qualify the specific uses your Landlord will absolutely not approve prior to beginning your marketing campaign.
3. Why are you looking for space?
Consider asking each tenant to complete a Prospect Form that asks some basic questions before you show the space. Based on the submitted form you can do some research prior to the showing, enabling a better understanding of the tenant’s needs.
4. Do you have any special requirements for the space?
Restaurant prospects will always have several special requirements you need to be aware of, including grease traps, gas lines, water lines, and more.
5. If relocating, what specifically is the reason for moving?
It is possible you might uncover a hostile situation that must be disclosed to your Landlord.
Keep in mind – in the current leasing market many prospects are simply gathering rent and NNN quotes, to aid them in the renewal of their existing lease.
6. How long of a lease term do you want to sign?
Prospects often ask how much TI the Landlord is offering; there is a direct correlation to the length of a lease term and the amount of TI a Landlord is willing to invest into a new lease.
7. What is your rental budget?
If they have a Business Plan, they are ahead of the game and more qualified to move forward with the transaction.
8. What is your timing?
In a more competitive market, understanding of timing is essential. You may need to disclose the level of competition for vacancy, assisting in driving rents higher, and creating a sense of urgency for prospects that may not be fully committed to opening the business.
9. How will the operation be financed?
It is a good idea to have a Commercial Lease Application form to send to all prospects to fill out prior to showing space. This process will easily weed out “tire kickers” that have no real intention of opening a business.
10. How did you come to us?
Understanding the source of your prospects will aid you in directing your marketing efforts.
As a leasing agent, when using focused questions like these, you obtain more information and differentiate yourself from your competition. What type of prospects are coming to your property, When those prospects are ready to move forward, Where those prospects need to be located, Why they are seeking space, and How prepared are they as business operators are basic fundamentals for understanding how qualified your prospects are, and where these prospects are in the deal process.
When you fully qualify prospects for the correct location – you save time, save your intellectual capital, and make recommendations to your owners leading to long term successful tenants.
SOURCE: STRATEGIC RETAIL GROUP Blog
Bradley T. Balbo | Senior Vice President
[email protected] | 602.778.3831