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Attracting Prospective Tenants
By arlene | June 19, 2008
A signboard stating that a property has space for rent is the most cost-effective way of obtaining prospects for residential, office, industrial and smaller retail properties. Prospects who are attracted in this way will be prequalified, since they will have satisfied themselves as to the locational advantages of the property and the character of the neighbourhood.
The exterior appearance of the property is as important as your signboard, since this is perhaps the only impression of the property that many prospective tenants will ever have. For this reason, the grounds and public spaces of all your properties should be kept in the best possible condition. Only if a prospect has a favourable impression of a property, will you have an opportunity to rent the space to him.
If your analysis of a residential, office or industrial property reveals that it has special attributes which make it particularly suitable for a specific type of tenant, a direct-mail approach is possible. Purchased mailing lists are not very effective, unless they have been compiled for your specific target market. It is more profitable to compile your own list. For example, in the case of bachelor-type flats, you may consider contacting local school leavers or university students who are about to graduate. An office building that is located close to the magistrate’s court or deeds office may be especially suitable for people in the legal profession.
A thematic image for a property can also be used to good effect in attracting prospective tenants. The theme may be suggested by a unique architectural design, or the topography of the surrounding area. Thematic images can be reinforced by the name of the property and the use of colours and symbols, both on the property and in all promotional material. Shopping centres which have strong thematic images are to be found in most of the larger towns and cities in South Africa, the conversion of the old station building in Durban to The Workshop being a good example. The use of themafic images for other types of property has up to now been limited to larger office properties and those in prime locations. For such properties, display advertising and promotional activities are effective in generating demand for space. The thematic approach has not been used to any great extent for smaller or less sought-after properties, although these can benefit equally from such an approach.
Tenants with a high level of perceived status are another useful drawcard when leasing nonresidential properties. For these properties, the first tenant is important. If your first lease is concluded with a well-known firm, this will attract other firms. Unfortunately, the converse is also true. If you make many concessions or accept a firm of mediocre stature as the first tenant, you could have difficulty in leasing the rest of the property. The first lease, and sometimes its lease conditions, tends to set the tone for the entire property.
As with sales, mutual referral agreements with other administration firms may be a profitable source of business. There will always be prospects with specific requirements whom you are unable to accommodate. A telephone call to another leasing agent will immediately establish whether he can help the prospect. This service will not only add to the public image of your firm, but also to your own income if a lease results.
For residential properties, classified advertising and referrals by existing tenants are the primary sources of new tenants. Demand for major office properties can be stimulated by promotions and advertising. Where major retail properties are concerned, the emphasis in attracting tenants is on personal selling, especially when dealing with the major national chains. Signboards, promotion and advertising play a supportive role. Leasing commercial and industrial properties requires you to target your efforts at specific firms, either by direct mail or by personal selling.
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Topics: Agent, Commercial, Market, Property, Rental, Residential, Sale, School, South Africa |
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