It is important to understand the target-tenant’s perspective when marketing vacant premises and trying to attract tenants to available properties. There are two aspects of property-marketing in the context of the property-management leasing functions:
- Understanding the target‒tenant’s needs
- The use of a mixed marketing strategy to promote vacant premises
This article will focus on how to understand and match your marketing efforts to your target‒tenant’s needs.
Understanding the motivation behind a tenant’s selection
Understanding what motivates a tenant to choose a particular premise from which to operate his business is of vital importance. When making a location decision for his or her business, decision-makers will consider some of the following factors:
- The traffic, transport and connectivity infrastructure
- The location of the premises relative to suppliers and complementary service providers
- The location of the premises relative to competitors, other amenities, entertainments and service centres
- Available parking within the development
- Rental rates
- The range of usable area within a building
- The age of the building
- The interior and exterior design and appearance of the premises
Other considerations will be security and fire emergency control measures, lease structure and the lighting and natural lighting within the development.
Your marketing information should always match a prospective tenant’s requirements, using the above factors, to help them with their decision‒making process.
Understanding a tenant’s future space requirements
Becoming familiar with your tenant’s business and property needs will also enable you to understand their future space requirements. To find out what these are, I suggest you ask the following questions:
- What business, sub‒sector and sector is the tenant in?
- What does the tenant’s financials tell you about his business?
- Is (s)he growing or shrinking?
- Is the tenant’s staff complement growing or shrinking?
- Is the tenant seeking additional capital or recapitalisation of their business?
Another important consideration when assessing a future or existing tenant’s space requirements is knowing and understanding which economic- or investment-sector your tenant falls into. If their trade- or investment- sector is performing poorly, or has particular challenges, your tenant’s business may be affected, resulting ultimately in a change for their demand for space.