Business & Finance Renting & Real Estate

Top 10 Questions to Ask a Commercial Real Estate Tenant

On an average working day, you as the commercial property agent will get plenty of enquiries for properties to lease.
In an ideal world you will have some leasing stock to quote and show the tenant.
As part of the process in handling the enquiry you can have a checklist to use in asking the right questions of the prospect tenant.
Good questions asked in the right way will help you drill down on property selection and the 'best fit' for the tenant.
I have given you some 10 ideas and questions to put into your checklist with any tenant enquiry.
You can add to the list based on your location and property type.
Here is the list:
  1. Who are you talking to and what are the contact details for that person? Get this sorted and qualified early in the conversation.
    If they will not tell you too much, then you are likely to be talking to another agent; in which case I would restrict the information until the person is open and honest with me.
  2. How did they find you? That information is handy when it comes to refining your marketing approach with the different listings on your books.
  3. Have they seen any other properties locally with any other agents? Get this fact as quickly as you can.
    It will have some impact on how you deal with the enquiry and take the prospect to the property.
    With properties that have been on the market for a long time, it is not unusual to have prospective tenants approach you that have seen your listed property with other agents earlier.
  4. What is the ideal location for any property that they want to lease? Location will be critical to many businesses given their customer base and transport or staff factors.
  5. What is the ideal tenancy or property size that they require? That number could be split into subsets of areas such as office space, warehouse, showroom, loading areas, hardstand, storage, and car parking.
    The more detail you can get here, the better it will be for finding the right property and your negotiations.
  6. They will need certain improvements in a property.
    Some of those improvements will be 'must haves' from a business perspective.
    Determine what those factors are and why that is so.
  7. The timing of any property changeover can be lengthy.
    Depending on their current business, they may need a transition time to effect the relocation.
    That being said, they should not and do not get access to the premises until the lease is signed and all monies are paid.
    Some inexperienced agents have not done the right thing here by letting the tenant have early access, and the ramifications are great.
  8. The permitted use of the premises will be quite specific.
    It needs to comply with the zoning of the property.
    In all leases it pays to make the permitted use quite specific; that then gives the landlord some control if any assignment or sublease is requested by the tenant.
  9. The services and amenities to the property should be modern and suit the business type.
    The property should be well maintained for this purpose.
  10. The layout of the property will be a factor of property selection given the way in which the tenant currently operates their business.
    They may need to bring in an architect to help them with the variances of property use and fit out design.
Leasing commercial and retail premises as a commercial property agent today is a matter of getting all of the facts up front and helping the tenant through the challenges of relocation.
Use a checklist to help you here.
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