Commercial leasing agents play a critical role in the property industry in Australia. These real estate experts liaise with property owners and potential tenants to match them to the right property. In this role, they are important intermediaries between the parties, ensuring smooth transactions and successful long-term leases.
In Australia, commercial real estate is a multibillion dollar industry, responsible for more than $16.7 billion in international investment in 2017 alone. Leasing of commercial offices is estimated to be valued at almost $62bn.
In this competitive industry, specialist knowledge is required to negotiate the leasing process. Find out more about understanding the role of a commercial leasing agent and how they can help you to find your future office premises by contacting Aegis Property Group.
How To Become a Commercial Leasing Agent?
In Queensland, there are specific requirements to become a commercial leasing agent.
One of the fundamental requirements is a real estate licence. This provides the basis for a person to own or manage an agency, negotiate on behalf of a buyer, seller, or landlord, and to advertise properties for rent or sale.
In addition, a commercial property agent must have a business letting corporate real estate agent licence. This allows the company to rent or lease office premises, industrial sheds or shops in shopping centres, collect rent or manage properties, and negotiate business letting (including interests in business).
Additional training is often undertaken by those seeking to specialise in commercial property management. Most experienced agents have come “through the ranks”, learning about property management and leasing arrangements at property agencies.
People who thrive in commercial leasing are enthusiastic, results-driven and transparent in their dealings with property owners and tenants, such as the team at Aegis Property Group.
How To Identify Potential Clients and Properties As a Commercial Leasing Agent
Once a commercial real estate agent has their qualifications and work experience, the next step to understanding what a commercial leasing agent does is identifying potential clients and properties.
Often this comes down to professional networking, marketing and knowing the market. Commercial agents develop deep knowledge of market trends, including vacancy rates, rental rates, incentives and other key deal metrics, future developments, market changes, and emerging opportunities.
Being a local specialist can help. By focusing on a niche area, you can forge strong contacts and knowledge. Relationship-building is also important across the industry. Agents work with tenants, developers, and asset owners to drive successful outcomes. Their contacts have to stretch across all these segments.
Being proactive and engaged – as well as resilient – will allow commercial property leasing agents to identify future clients and develop a pipeline of opportunities.
How To Create Effective Commercial Property Marketing Strategies as a Leasing Agent
Marketing plays a crucial role in the commercial leasing industry as it helps attract potential clients and tenants to the properties.
Effective marketing strategies can significantly enhance the visibility of the property, generate enquiry, and increase the likelihood of successful leasing campaigns.
Identify the target market and the ways to reach them. This could be through personalised outreach, content or advertising. Once the potential client is identified, ensure the marketing collateral is of high quality, sufficient to warrant an inspection.
How To Conduct Commercial Property Leasing Inspections
Property inspections are a key component of commercial leasing in an existing property. Prospective tenants have the opportunity to view the property, assess its suitability, and ask questions.
In order to display the most appealing “face” of the property, it should be clean, well-maintained, and presentable. The previous tenant should have done repair and rectification works under make good lease requirements.
Be prepared for questions about the property. Be open and professional, and come armed with all the information available about the size, costs, building services, ESG ratings, incentives on offer, and preferred terms. Consider the property from the tenant’s point of view, and respond accordingly.
How to Negotiate Commercial Lease Agreements?
Commercial property agents play a significant role in the negotiation process between owners and tenants when determining the lease agreement. Through their expert knowledge, they can guide the prospective tenant through the process of negotiating key terms and conditions that they believe their client (being the Owner) will agree to.
These could range from incentives, rent abatements and other enticements to enter into the lease, or make goods at the end of the tenancy period. Setting the gross rent is important as the benchmark price for the property.
Agents also have specialist and market knowledge, meaning they can assist their clients to achieve the most appropriate rental cost for their property or tenancy. For more on negotiating commercial lease agreements, read our article.
How To Maintain Strong Relationships With Clients and Tenants
A positive and proactive approach to client and tenant relations will help establish your reputation for high-quality services, driving satisfaction and repeat business.
Effective and clear communication is important to ensure all parties know their role and responsibilities in the lease agreement. This can help to reduce potential disputes as well.
Being proactive and engaged is important to understand client needs and find appropriate solutions for them.
The Importance of a leasing agent in the commercial property industry
A business lease is one of the most significant decisions for a business, which can have a material impact on future financial performance. Commercial leasing agents can guide businesses to ensure a positive outcome during the process of leasing, and the tenancy.
Commercial property leasing agents play a pivotal role in the industry, helping match supply and demand for offices. Engaging an expert in a local market, as well as the processes of commercial leasing, is important to get the best result for a business.