Just wanted to get some input on how developers market vacant space to potential retailers. I've managed homes and apartments and that's pretty straightforward and easy. I know this is a very open-ended but please work with me. Just curious of what the norms are with most commercial developers and owners.
I know you can simply put up a sign or put the property on loopnet but just curious if there are any more proactive approaches.
Some websites for larger retailers list the tenant reps or company contact for their real estate but I feel like getting any attention from them at all is difficult due to the amount of requests they must deal with. And you are not likely to ever get a response.
I've reached out to some tenant rep brokers, outside of leveraging their network/experience/relationships/working the phones, what type proactive steps do they take to bring in tenants?
Finally, what is standard fee for these brokers? 3%-5% on primary term?
I'm just not too interested in signing an exclusive listing agreement with a tenant broker yet.
Thanks for your input
Your post is unclear of exactly what you are trying to accomplish. Are you an owner of a retail strip center currently that you are trying to lease up??
Are you contemplating buying a strip center and wondering how the lease up will occur??
To answer your question, yes and no. I own a retail property with existing tenants and curious how I could fill a vacancy if one became available. Also, I'm interested in ground up development of a strip mall and interested to knowing how I can have tenants lined up upon completion.
2.5-3 is the standard for tenant rep brokers in the area, you need to represent yourself. loopnet, costar, craigslist. the retail tenant rep broker contact info is pretty good, they do go through it, if the location is great, they will be the one hunting you down. you may also want to send out flyers to brokers in the area. every day a property remains vacant, the landlord is losing money, so they shouldn't worry too much about postage/printing costs. larger retail developments lock in the tenants after plans have been drawn, instead of building then waiting for tenants to lease.
Look for a leasing broker with the Costar leasing package.
This gives data on which tenants leases are coming up for renewal and what per sq ft they are paying with size per unit.
The leasing broker then does a " void analysis " of what might be the target tenant to go there for the best fit and rent for the center.
I have not done any commercial before but here where I live some of my friends have had good success joining the Chamber of Commerce or sharing their new development plans with our local Chamber. The Chamber has many members who are bankers, brokers, builders, insurance agents etc in it so when a new client comes into town and starts an account before finding a location to do business guess who finds out first, its members. Might be a good place to become a member and network.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.