Landlords are landing tenants. What’s their secret?
They know how to stimulate demand.
Landlords landing tenants understand this secret and know that most brokers and landlords are spending time on the “symptom” and not the “problem”. The “symptom” is easy to treat: do more. The “problem” is much more difficult: change your approach.
Most landlords who call our office, tell us,
“I have 20,000 SF in X town. Do you have any tenants?” Or we’ll get a call and someone will ask,
“I’ve had my building listed for 12 months with no proposals. I don’t understand why. Can you do more than the guy helping me now?”
The truth is, the broker you’re working with is probably doing a good job. But, you may be blaming your broker for the lack of activity, saying, “if my broker were doing a better job, he would be at least showing my building and bringing me proposals. Anything would be better than nothing.”
If your broker has done his job well, and most commercial real estate brokers I know do, he’s put your building on the market and has been responsive to inquiries. You ask for more and he promises you more.
“Run more ads, post better photos, call more tenants, hang a bigger sign, make a better website, call all of the brokers and tell them about the listing.” If those efforts don’t work, change brokers and repeat.
Behaviorally, in an effort to drive a successful outcome, it’s our nature to intensify our actions when we don’t see something working. People intensify their actions until the system breaks or the outcome doesn’t change.
Change your approach. Instead of talking at tenants by blasting them with more and more information about your offering, talk with tenants. Enter into a conversation about what their problems, challenges, and demands are. Yes, “more affordable rent” is at the top of the tenant’s list. It’s also the size, location, or need for improvements that the tenant cares about. Other times it’s a deadline or access to public transportation that matter most.
Try asking tenants what they would do if they owned your building and were trying to attract companies such as theirs.
Landlords understand that by crafting marketable solutions by understanding tenant demands, they place more tenants, land the best deals, and preserve and grow the values of their assets. They also create relationships with their tenants based on respect, understanding, and mutual success.
Have the tough talk with your broker and tenants today. Find out what they really want, even if it’s not what you want to hear. Successful landlords give tenants what they want and in the process build enduring relationships that survive market cycles.
If you have space that you are having trouble filling, email me at Jeremy@Mansardcre.com with the words “Get Tenants for My Building” in the subject line. Include your name, when you would like to be called, and the best number to reach you. I will contact you to schedule a time for you to invite me to your building for a free consultation. If there’s a fit, you may retain us to fill your vacant space. If there isn’t a fit, we’ll tell you we cannot help and will refer you to another firm.
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About the Author:Jeremy Cyrier, CCIM is a principal with MANSARD Commercial Properties and member of the CCIM Institute faculty. He offers advisory services and brokerage expertise to commercial real estate owners and tenants. You may reach Jeremy at Jeremy@Mansardcre.com.