Why Offer Leasing Services?
Commercial real estate is a multi-faceted business, and has several distinct income streams. However, not every broker or brokerage offers leasing assistance. There are sales and management, and leasing services. The leasing process is a great way to start to build your CRE business and learn the nuts and bolts of the industry.
1. Leasing services are the building block of investment properties
It is best to learn how the lease affects the property’s financial picture. Some of these factors are the base rent and annual rent increases, the term of the lease, and renewal options. Additionally, the operating costs pass-throughs, signage rights, expansion options, termination rights, parking requirements and numerous other property rights that affect the value, purchase, and sale of a property. Clearly, there are many building blocks for commercial real estate.
2. Leasing boosts careers
Leasing services provide a source of commission revenue for the “new-to-business broker” and a way to build lasting business through relationships with companies and tenants. Many successful brokers spend their entire career in leasing. And why not? The leasing market is in a constant state of movement. Leases expire every three to five years on average, which creates opportunity in the market to work with landlords to lease space, or engaging in tenant representation. In conclusion, offering leasing assistance can help boost the career of commercial brokers.
3. Leasing property creates a need for signage and branding.
Every property for lease requires signage. Signs can help generate leads, showings at the property, and even tenant representation opportunities. Additionally, the branding afforded from leasing creates a presence in the market, which then can lead to other leasing opportunities, along with sales and management opportunities.
4. Leasing services create market experts
Strong knowledge of the leasing market creates outstanding market knowledge that establishes the broker as a market expert. With that being said, when brokers offer leasing services, they will get to know the market very well.
Remember this: Not only is leasing a cornerstone of the commercial real estate business, but it is also profitable. So, it is an excellent service to offer your clients.