How to position your commercial property for lease
Edward Ward, Head of Leasing, JLL SSA says it requires a professional approach to ensure your property stands out in a crowded market.
While there is a healthy demand for high quality accommodation in prime nodes across the country, there is no doubt the commercial and industrial property landscape is becoming increasingly competitive. To achieve success in this vigorous marketplace, it is essential to understand where your real estate asset fits to ensure proper positioning. To do this, a thorough understanding of the market is essential prior to the launch of a new development or take-up in a building once the current tenants have vacated.
A focused strategy is required
Years of experience has proven that you cannot employ a ‘shotgun’ approach if you want to maximise the value of your property. Focused, well-thought-out tactics delivered by the right professional team will have a positive impact on the leasing process.
There are three key pillars to a successful strategy that aims to uncover a building’s niche positioning and target audience:
1. Market research and in-depth property analysis
This initial step includes a market overview and scrutiny of nodal-specific data analysis and local insight. With this at hand, it is advisable to evaluate the existing design/amenities and benchmark the building against relevant competitors.
Factors for consideration include:
- Understanding current property position
- Tracking performance of competitor properties
- Identification of property differentiators in the building
- Identification for potential improvement areas
- Potential to adapt building in response to tenants changing needs
- Location and infrastructure
- Building condition and grade
- New developments in the area
- Parking ratio
2. Asset positioning and occupancy improvement for the asset
It is also imperative to have an overview of the general asset class the building sits in, together with a more focused perspective on its particular node. For instance, an understanding of future supply and current vacancies within the node allow the landlord to position the building at the correct price to attract the right tenants, ensuring a ROI. Further to this, it is good to understand the rental rates together with the vacancy rates. Then you should be aware of what grade of industrial and commercial buildings are in demand in the specific area. All these facts and figures result in a better understanding of what capital improvements can be made to the building and what niche differentiators to push to your target tenants.
3. Proactive strategic marketing strategy and implementation
With a clear understanding of the type of building and its location, its suitability for single or multi-floor tenants and the advantages that set is apart from the competition, a strategic programme to market the property can now be developed.
The detailed research and positioning process is leveraged to identify and create tenant profiles. This ensures all marketing efforts are targeted, streamlined and efficient, matching a unique building benefit with a specific demand.
This is a process that can save the landlord time, effort and most of all money. With a sound grasp of the market, price points and differentiating features, property owners can direct compelling content to a market of qualified and credible leads. It’s all about maximising the value of your property asset.