The Importance of Real Estate Leases

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The Importance of Real Estate Leaseswww.dncommer
cial.net
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• Leases are the foundation of property
  performance. The best salespeople understand the
  leasing process and the high value that it brings
  to the future sale. A good lease can enhance a
  sale price when the time comes.

• The way that leases work for the property
  investor will solidly impact on the property and
  its performance for the duration of the lease. As
  you work with tenants or buyers for the property,
  the type of lease that applies will also impact
  on the negotiations. Let's look at the main lease
  types and expand on some of the most relevant
  issues for you.

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• If you are going to look for some of the leasing
  business in the local area, choose the best
  properties to work on and the quality clients to
  work for. There is a real reason for this. Small
  and single properties are usually very 'hard
  work' to lease. If the base rent is small, your
  fee for a successful transaction will also be
  small. Focus your leasing effort on quality
  properties with good fee potential.

• When it comes to leasing a property and
  particularly a retail property, the tenant mix
  process will be very important. This then says
  that the single tenant lease should be matched to
  the surrounding tenants in the greater property.
  That is how you build 'clusters' of tenants and
  strengthen the market rent for the landlord.

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• Negotiating a commercial real estate lease
  needn't be a battle. Remember, and you shouldn't
  have to remind the landlord of this, that it is
  in both of your best interests that you are
  successful. If you lease on bad terms, you go out
  of business, and they have no tenant. In fact,
  many landlords now recognize that providing
  "superior tenant service" begins by making the
  lease negotiation process as simple and efficient
  for tenants as possible.

• Bear in mind that oftentimes they are going to be
  paid by the landlord for filling the space.
  Building a relationship with your agent can be
  done, just as building a relationship with your
  banker, your realtor you bought your home with,
  or your advertising agent - with communication.
  Ask around, ask other agents, ask the agent
  questions, leave nothing to question.

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• Negotiation leverage between landlords and
  tenants has shifted tremendously throughout the
  last several decades however, it is now a highly
  favorable market for businesses considering
  relocation. A surplus of office vacancies has
  paved the way for tenants to secure great lease
  terms and let's face it, due to the fierce
  competition in the marketplace, some landlords
  are offering financial incentives that are just
  plain hard to pass up. It's now possible for
  companies to get into a higher-grade office
  building in a better location at the same rental
  rate, or in some cases, an even a lower rate than
  their current building. However, change is in the
  air.